Vietnam: The debt purchase shall be made into a contract

15:38, 17/08/2017

This is the content specified in Circular No. 09/2017/TT-NHNN amending Circular No. 19/2013/TT-NHNN on purchase, sale and settlement of bad debts by Vietnam Asset Management Company (VAMC).

According to Circular No. 09/2017/TT-NHNN of the State Bank of Vietnam, the debt purchase shall be made into a contract. The final price must be the highest price among the offered prices to minimize loss on bad debt settlement.

Also according to Circular No. 09/2017/TT-NHNN, VAMC may authorize a credit institution to sell the bad debt under the requirements and conditions imposed by VAMC.

Moreover, the sale of a purchased bad debt must:

- comply with law;

- ensure objectivity and transparency;

- ensure that the debt, including interest and fees (if any), is collected as much as possible;

- not be taken advantage of to earn illegal benefits.

View details at Circular No. 09/2017/TT-NHNN of the State Bank of Vietnam, effective from August 15, 2017.

- Thanh Lam -

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