The State Bank of Vietnam (SBV) is seeking comments on the draft of a new Decree and Circular to replace current regulations on the establishment, organization and operation of the Asset Management Company of Credit Institutions of Vietnam (VAMC). One of the notable points of the draft is the proposal to increase autonomy for VAMC in debt trading activities.
According to the comparison table of the draft Circular to replace Circular 19/2013/TT-NHNN (amended and supplemented many times), the regulations requiring VAMC to prepare and submit to the SBV for approval the "Special Bond Issuance Plan" and the "arset Purchase Plan at Market Value" are expected to be abolished annually. Articles 12, 13, 24, 25 of Circular 19 related to these plans and approval procedures are proposed to be abolished in the new draft.
Instead, the new draft Circular stipulates that VAMC will decide to buy bad debts based on the specific conditions of the debt, the "business plan" and the company's capacity, as well as the market situation.
VAMC's issuance of special bonds and bonds to pay debtor organizations will be based on the actual needs and business plan of the company.
The reason stated in the comparison table for canceling regulations on approving detailed plans is that the Decree replacing Decree 53/2013/ND-CP (drafted with) no longer stipulates that the State Bank must approve these plans, and at the same time, aims to implement the policy of cutting administrative procedures.
This proposal, if approved, is expected to help VAMC be more proactive and flexible in implementing the implementation of buying, selling and handling bad debts according to its overall business plan. The draft Decree and Circular are in the comment collection stage before being officially issued.
