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Vietnam’s Circular 32: 04 principles for restructuring of bad debts purchased

15:20, 02/01/2020

Recently, the Governor of the State bank of Vietnam has issued Circular No. 32/2019/TT-NHNN on amendments to some Articles of Circular No. 19/2013/TT-NHNN on purchase, sale, and settlement of bad debts of Vietnam Asset Management Company (VAMC).

According to Circular No. 32/2019/TT-NHNN of the State Bank of Vietnam, restructuring of bad debts purchased shall comply with the following principles:

- The bad debt restructuring must conform to Decree No. 53/2013/ND-CP of Vietnam’s Government, Circular No. 19/2013/TT-NHNN and terms and conditions of the credit contract, loan agreement, entrustment contract for credit extension, corporate bond purchase contract or entrustment contract for purchasing corporate bonds or debt purchase contract.

- VAMC shall consider, decide, and take responsibility for restructuring of the bad debts purchased at market prices according to borrowers’ written request.

- VAMC shall carry out the restructuring of the bad debts purchased with special bonds according to borrowers’ written request and Circular No. 19/2013/TT-NHNN.

- It is prohibited to take advantage of bad debt restructuring for illegal self-seeking purposes.

View amendments at Circular No. 32/2019/TT-NHNN of the State Bank of Vietnam effective from February 14, 2020.

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