Sacombank (Saigon Thuong Tin Commercial Joint Stock Bank) signed a contract to sell its three debts at market price to Vietnam Asset Management Company (VAMC) with a total outstanding loan of over VND2,580 billion (US$125.3 million).
Sacombank sold its bad debts to VAMC on the basis of the provisions of Resolution 42 of National Assembly, Instruction No.32/CT-TTg of the Prime Minister, Instruction No.06/CT-NHNN of the State Bank of Viet Nam and Sacombank's post-merger restructuring plan.
Sacombank and VAMC also signed an agreement on handling bad debts and assets. The two sides will coordinate with each other to collect from VND15 trillion to VND20 trillion (from US$660 million to US$880 million) in 2017.
The bad debts that Sacombank sold to VAMC will be paid by special bonds at market price. In 2017, there will be at least VND1,000 billion (US$44 million) of bad debt at market price traded.
Sacombank is one of six credit institutions that were selected by the State Bank of Vietnam to implement Resolution 42 on dealing with bad debts.
Recently, VAMC has bought a VND2,400 billion (US$105.6 million) debt from Hoan Cau company in Sacombank by special bond dated 31 August.