TO AMEND THE REGULATIONS ON PURCHASE, SALE AND SETTLEMENT OF BAD DEBTS BY VAMC
On August 14, 2017, the State Bank of Vietnam issued the Circular No. 09/2017/TT-NHNN on amending the Circular No. 19/2013/TT-NHNN dated September 06, 2013 on purchase, sale and settlement of bad debts by Vietnam Asset Management Company.
VAMC shall consider reducing or removing the outstanding late payment interest, fees and fines when they borrower fully pays the principal of all bad debts at VAMC or the borrower cooperates with VAMC and the authorized credit institution; the remission helps the borrower alleviate its financial difficulties or restore its business performance; the borrower has a feasible plan for paying the debt or financial restructuring serving debt repayment. In previous regulations, in this case, the borrower immediately repays or promises to repay within 60 days at least 5% of the outstanding principal when the exemption, reduction of fines, fee, and overdue interest is being considered.
This Circular also prescribes on selling a bad debt purchased at market value, VAMC shall decide and take responsibility for the sale of bad debts purchased at market value by negotiation with the buyers or through submission of bids or proposals.
This Circular takes effect on August 15, 2017.
