The document will come into effect on February 15, 2014 and be valid from the 2013 fiscal year.
Accordingly, VAMC’s operation capital comprises the owner’s investment capital and mobilized capital.
The owner’s investment capital is VND500 billion (US$23.5 million) as charter capital while development investment fund is raised from regulated extractions and other ownership capital in accordance with regulations on one-member limited liability companies in which the State holds 100% of charter capital.
The mobilized capital is from VAMC-issued special bonds in accordance with the State Bank of Vietnam’s regulations and other mobilized capital is complied with regulations on one-member limited liability companies in which the State holds 100% of charter capital.
VAMC can use its legal capital, except from the special bonds, to purchase bad debts at market prices, which is considered as an investment as it is used as equities. It tracks and do accounting on the investment as regulated.
Beside buying and selling debts and assets, VAMC just can invest in depositing at State-owned commercial banks, contributing capital and purchasing stocks as regulated.
The circular also includes regulations on setting up and using contingent funds which are extracted from the purchased bad debts in accordance with the SBV’s regulations.
VAMC’s contingent funds for inventory price reduction, financial investment losses and insecure debts, except from debts from credit institutions are set up and used in accordance with regulations applied for businesses.
When VAMC sustains losses, it must report the MoF, the SBV and the Prime Minister for solution.
Source: chinhphu.vn