Sacombank and VAMC sign the cooperation agreement on dealing with bad debts in accordance with Resolution 42


On September 28th 2017, in Ho Chi Minh City, Sacombank and Vietnam Asset Management Company (VAMC) have signed the cooperation agreement on dealing with Sacombank’s bad debts and collateral of the bad debts sold to VAMC to be in accordance with Resolution No. 42/2017/QH14 of National Assembly, Directive No. 32/CT-TTg of the Prime Minister, Directive No. 06/CT-NHNN of the State Bank of Vietnam and Sacombank’s re-structuring scheme after the merger.

Ms. Nguyen Duc Thach Diem – CEO of Sacombank (left) and Mr. Doan Van Thang – Member of VAMC's
Member Council cum CEO sign the cooperation agreement witnessed by Mr. Nguyen Hoang Minh – Deputy Director of SBV HCMC Branch,
Mr. Duong Cong Minh – Chairman of Sacombank’s Board of Directors and Mr. Nguyen Tien Dong – Chairman of VAMC's Member Council.

Accordingly, Sacombank and VAMC will work closely to create a schedule to deal with bad debts for every year, accelerate to collect bad debts. The immediate objective for 2017 is to deal with bad debts and collect from VND15,000 billion to VND20,000 billion. Sacombank will suggest a bad debts list to be sold to VAMC by special bonds and other bad debts to be sold at the market price. In 2017, the two sides will consider trading bad debts at the market price with minimum trading value of VND1,000 billion. For bad debts VAMC bought by special bonds, the two sides evaluate, classify debts to give suitable solutions so as to conduct more effectively.     

Mr. Nguyen Tien Dong – Chairman of VAMC's Member Council gives a speech at the ceremony.

Mr. Duong Cong Minh – Chairman of Sacombank’s Board of Directors gives a speech at the ceremony. 

At the ceremony, Sacombank signed the contract to sell 3 bad debts to VAMC at the market price with total trading value of over VND2,580 billion and collateral are real-estates, valuable instruments and machines in Da Nang and Ho Chi Minh City. 

The State Bank of Vietnam has selected 6 credit institutions (including Sacombank, ACB, BIDV, Vietcombank, VietinBank, Agribank) as pioneers to implement timely and effectively Resolution No. 42/2017/QH14 taking effect on August 15th by applying all related policies to bad debts handling. These credit institutions determine objectives, schedules to conduct for each year, report problems, difficulties to the Ministries and branches for improving the legal documents on guiding bad debts handling. It is a legal framework that supports credit institutions to settle quickly and definitely eliminate bad debts. So that, credit institutions could continue to promote their role as a leading capital channel, meeting the capital demand for production and business activities of the economy. 

Given the cooperation agreement signed with VAMC, Sacombank has more advantages to conduct its re-structuring scheme successfully after the merger.