Decree No. 34/2015/ND-CP dated March 31, 2015 of the Government amending a number of Articles of the Decree No. 53/2013/ND-CP dated May 18, 2013 of the Government on the establishment, organization and operation of Vietnam Asset Management Company

THE GOVERNMENT

Decree No.34/2015/ND-CP dated March 31, 2015 of the Government amending a number of Articles of the Decree No. 53/2013/ND-CP dated May 18, 2013 of the Government on the establishment, organization and operation of Vietnam Asset Management Company

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on credit institutions dated June 16, 2010;

Pursuant to the Law on Enterprise dated November 29, 2005;

At the request of the Governor of the State Bank of Vietnam;

The Government promulgates the Decree providing amendments to a number of articles of the Decree No. 53/2013/ND-CP dated May 18, 2013 by the Government on the establishment, organization and operation of Vietnam Asset Management Company (hereinafter referred to as VAMC).

Article 1. To amend a number of articles of the Decree No. 53/2013/ND-CP dated May 18, 2013 by the Government on the establishment, organization and operation of the VAMC:

1. To amend Clause 3 Article 7 as follows:

“Based on the financial capacity of the VAMC, economic efficiency and market conditions, the VAMC may buy the bad debts from credit institutions by the method prescribed in Clause 2 of this Article for bad debts satisfying the following conditions:

a) The conditions specified in Article 8 of this Decree are satisfied;

b) Money used to buy bad debts is considered recoverable;

c) The collateral of the bad debt can be put on sale or the borrower is able to restore the solvency.”

2. To amend Article 9 as follows:

“Article 9. Charter capital

1. The charter capital of the Asset Management is VND 2,000 billion.

2. The adjustment of charter capital of the VAMC prescribed in Clause 1 of this Article is decided by the Prime Minister according to the proposal of the State Bank after completing the negotiation with the Ministry of Finance.”

3. To amend Point i Clause 1 Article 13  as follows:

“i) Be eligible for an amount of money at a rate regulated by the State Bank after the consensus with the Ministry of Finance according to the amount recovered from bad debts bought by the VAMC using the special bonds deducting the amount of money that the VAMC has collected according to the provisions in Point l of this Clause.”

4. To add Points l, m, n  to Clause 1 Article 13 as follows:

“l) Be entitled to collect an amount of money at a rate regulated by the State Bank after the consensus with the Ministry of Finance according to the closing debt balance bought by the VAMC using the special bonds.

Money the credit institution returns to the VAMC as prescribed in this regulation is included in the expenditure of such credit institution.

m) Be entitled to inherit the rights and obligations of creditors from debt-selling credit institutions, including procedural rights and obligations in the lawsuits against the borrowers, debt payers and guarantors; inherit rights and obligations of creditors from debt-selling credit institutions during the litigation process.

n) The VAMC, the debt-selling credit institution are not required to register the change of the guarantor in the registered guaranty contract when buying the bad debts from each other.”

5. To add Article 14a after Article 14 as follows:

“Article 14a. Issuance of bonds to buy debts according to market price

1. The VAMC may issues bonds to buy bad debts according to market price on the basis of the plan on bond issuance approved by the State Bank.

2. The issuance of bonds of the VAMC may not conform with the regulations on rules and requirement for issuance and documents about the issuance of bonds according to the regulations of the Government on issuance of corporate bonds as well as the regulations on rules of capital mobilization according to the regulations of the Government on the investment of state capital in an enterprise and financial management of the enterprise of which 100% charter capital is held by the State.

3. The VAMC may issue the bonds:

a) Through bidding;

b) With guaranty;

c) Via an agency;

d) Direct sale.

4. Bonds issued by the VAMC that are held by credit institutions are used for open market operation and refinancing at the State Bank.

5. The State Bank is in charge of detailing the regulations on issuance of bonds of the VAMC.”

6. To amend Clauses 6 and 7 of Article 16 as follows:

“6. Sell debts to organizations and individuals. The sale of bonds to a non-resident organizations and individuals shall be in accordance with the regulations of the State Bank.

7. File lawsuits or authorize debt-selling credit institutions to file lawsuits against borrowers, debt payers and guarantors; authorize the debt-selling credit institutions to exercise rights and responsibilities of VAMC in the litigation process.”

7. To amend Clause 1 Article 18 as follows:

“1. Collateral of bad debts that the VAMC bought is settled according to the agreement between the guarantor and the obligee; otherwise, collateral shall be auctioned according to the provisions on Clause 2 of this Article.”

8. To add Clause 2a to the end of Clause 2 Article 18 as follows:

“2a. If the auction of collateral of bad debts prescribed in Clause 2 of this Article is not successful, the VAMC may sell such collateral via auction again or sell such collateral according to the agreement with the buyer, concurrently with notifying the guarantor. The cases that are considered failed auctions:

a) The auction occurs without bidders;

b) None of bidders call out their bids;

c) Other cases according to the legislation on auction.”

9. To amend Point c Clause 1 Article 20 as follows:

“c) Special bonds are sold in VND with interest rate at 0% and duration not exceeding 05 years. Regarding the special bonds for settlement of bad debts of a credit institution carrying out a restructuring project or have financial difficulties, duration of special bonds shall not exceeding 10 years.”

10. To amend Clause 3 Article 20 as follows:

“3. The State Bank is in charge of detailing the regulations on refinancing using special bonds.”

11. To add Point c to the end of Clause 1 Article 21 as follows:

“c) May buy bad debts from VAMC before the expiration of special bonds.”

12. To amend Point a Clause 2 Article 21 as follows:

“a) Set up the annual risk provision for special bonds in their operation expenses during the duration of special bonds so as to create a source for handling bad debts when they are bought from VAMC as prescribed in Clause 3 of this Article.”

13. To amend Point a and to add point k to Clause 1 of Article 23 as follows:

“a) Money from loan recovery;”

“k) Money collected according to the regulations in Point l Clause 1 Article 13 of this Decree.”

14.To add Clause 3 to Article 26 as follows:

“3. Provide direction and guidance for the tax authorities at all levels on assisting the VAMC in completing the documents to fulfill the financial obligations to the State when transferring the right to ownership, the right to enjoyment of the collateral to the buyers.”

15.To add Clause 3 to Article 27 as follows:

“3. Provide direction and guidance for the civil enforcement agencies at all levels on cooperating and assisting the VAMC during the implementation of sentences and decisions of the Court on the handling of the collateral."

16. To amend Article 28 as follows:

“Article 28. Responsibilities of the Ministry of Natural Resources and Environment

1. Providing direction and guidance for affiliated units on cooperating and assisting the transfer of the right to use land during the settlement of collateral at the request of VAMC.

2. Providing direction and guidance for affiliated units on cooperating and assisting the transfer of the right to use land during the settlement of collateral of the VAMC.”

17. To add Article 28a to the end Article 28 as follows:

“Article 28a. Responsibilities of the Ministry of Construction

1. Provide guidance on completing the legal records according to the legislation on construction and real estate business applicable to collateral being real estate project.

2. Provide guidance on conditions for selling collateral of the VAMC for asset being real estate to the investor in case of difficulties.”

18. To add the Article 28b to the end Article 28a as follows:

“Article 28b. Responsibilities of the Ministry of Planning and Investment

The Ministry of Planning and Investment is responsible for providing direction and guidance on procedures for revocation of the Investment certificate for the issuance of a new Investment certificate to a buyer or the auction winner of the on-land property of investment project (the collateral buyer) that is collateral subject to handling of the loan from the VAMC.”

19. To add Clauses 1a and 1b to the end of Clause 1 Article 30 as follows:

“1a. The Ministry of Public Security is responsible for providing direction and guidance for police departments at all levels within management authority on protecting public order and security at the place where the revocation or confiscation of collateral is carried out.

1b. People’s Committees at all levels within management authorities shall cooperate and assist the VAMC to carry out the revocation/confiscation and settlement of collateral at the request of the VAMC.”

Article 2. Implementation effect

This Decree takes effect on April 05, 2015.

Article 3. Implementation organization

The Ministers, Heads of ministerial-level agencies; Heads of Governmental agencies; the Presidents of People’s Committees of central-affiliated cities and provinces; President of the Member assembly, General Director of the VAMC; President of the Board of Directors, President of the Member assembly and General Director (or Director ) of credit institutions and other relevant organizations/individuals are responsible for implementing this Decree./.

For the Government

The Prime Minister

Nguyen Tan Dung