Stepping up VAMC Asset Selling

 

According to the circular, in case of purchasing bad debts from credit institutions following the market price, VAMC can determine the price by itself or hire an organisation specialising in validation to carry out the starting price determination. In case, VAMC purchases bad debts at the book value of special bonds from a credit organisation, it shall have to agree with such credit organisation on the starting price.

 

However, upon determining the starting price of auctioned assets as collateral for the bad debts, VAMC has to negotiate with the owner of that collateral or negotiate with the mortgagor on land-use rights in case the collateral is the land-use rights. In case the parties fail to agree on the starting price within five working days, VAMC shall reserve the right to hire an organisation with validation function or set the starting price for auction on its own.

 

To step up asset sale, the Circular 18 provides that VAMC is allowed to sell bad debts although there is only one buyer who offers a price at least equal to the starting price. In this case, the sale of the asset can only be conducted after the full implementation of the public listing and announcement and there are no complaints about the procedures and order until the end of the auction.

 

In case the auction is unsuccessful or there is no registered buyer, VAMC shall select a different method in accordance with the regulation of the State Bank of Vietnam (SBV).

 

Reportedly, VAMC has failed to sell some assets after three auctions and it still fails to achieve the purpose after hiring credit institutions to sell such assets for it.