VAMC asks for five-fold increase in charter capital

15:45 | 28/03/2017 Finance - Banking

The Viet Nam Asset Management Company (VAMC) has proposed to raise its current charter capital from VND2 trillion (US$87.6 million) to VND10 trillion by 2020.

vamc asks for five fold increase in charter capital
The VAMC has proposed to raise its current charter capital from VND2 trillion (US$87.6 million) to VND10 trillion by 2020 — Photo kinhdoanhnet.vn

The amount is aimed to enhance the company’s financial capacity to buy and sell bad debts at prevailing market prices.

This is one of the proposals in an itinerary of raising capacity to solve bad debts from 2017 to 2020 period that VAMC has sent to relevant bodies recently.

Other proposals include setting up debt buying and selling market and building provisional funds.

VAMC was established in 2013 with the initial charter capital is VND500 billion, which was seen as modest in comparison with the total non-performing loans that the company has to deal with. In 2015, the Government raised the company’s charter capital to VND2 trillion.

In its proposal, VAMC also wanted to issue government-guaranteed bonds worth of about VND45 trillion which will come from domestic and foreign organisations and individuals.

Theo VNS