THE MINISTRY OF FINANCE
Circular No. 209/2013/TT-BTC dated December 27, 2013 of the Ministry of Finance on guiding the financial regulations applicable to Vietnam Asset Management Company for credit institutions
Pursuant to the Law on Enterprises No.60/2005/QH11 dated November 29, 2005;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;
Pursuant to the Government’s Decree No. 53/2013/ND-CP dated May 18, 2013, on establishment, organization and operation of Vietnam asset Management Company for credit institutions;
Pursuant to the Government’s Decree No. 71/2013/ND-CP dated July 11, 2013, on Investment of state capital in enterprises and financial management of enterprises of which 100% charter capital is owned by the state;
Pursuant to the Government’s Decree No. 118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of Director of Department of Finance of Banks and Financial Institutions;
The Minister of Finance promulgates the Circular guiding the financial regulations applicable to Vietnam Asset Management Company for credit institutions.
Article 1. Scope of regulation and subjects of application
1. This Circular guides the financial regulations applicable to Vietnam Asset Management Company for credit institutions (Hereinafter abbreviated to VAMC).
2. The financial regulations of VAMC shall comply with legislations applicable to the one-member limited liability companies of which 100% of charter capital is owned by State, the Government’s Decree No. 53/2013/ND-CP dated May 18, 2013, on establishment, organization and operation of Vietnam asset Management Company for credit institutions (hereinafter abbreviated to the Decree No. 53/2013/ND-CP), specific contents and guides in this Circular and other relevant legal documents.
Article 2. Operational capital of VAMC
1. Investment capital of the owner includes:
Charter capital of VND 500 billion;
1.2. Fund for development investment which is deducted and set up according to the prescribed regime;
1.3. Other equity sources as prescribed by law applicable to the One-member limited liability companies of which 100% of charter capital is owned by State.
2. Mobilized capital:
2.1. Special bonds which are issued by VAMC in accordance with regulations of the State Bank of Vietnam;
2.2. Other mobilized capital sources as prescribed by law applicable to the One-member limited liability companies of which 100% of charter capital is owned by State.
Article 3. Use of capital and assets
1. VAMC shall be responsible for managing, using, monitoring all existing assets and capital, make accounting in accordance with the current accounting regulations; reflect fully, exactly, timely the situation of use, change of capital and assets during business; determine the responsibilities and forms of dealing with each division, individual in case of causing damages, loss of assets and capital of VAMC.
2. VAMC shall be entitled to use operational capital to serve for business operation as prescribed at Decree No. 53/2013/ND-CP, specific guides at this Circular and relevant legislation in the principles of ensuring security and capital development:
2.1. Special bonds shall only be used for purchasing bad debts of credit institutions as prescribed at Clause 1 Article 7 of Decree No. 53/2013/ND-CP.
2.2. VAMC may use its lawful capital sources, exclusive of special bonds, in order to buy bad debts at the market price as prescribed at Clause 2 Article 7 of Decree No. 53/2013/ND-CP. Debts which are purchased by VAMC at the market price shall be determined as an invested amount upon turning into equity capital, share capital. VAMC shall monitor and account this investment as prescribed in this Law.
2.3. VAMC may use capital for investment, procurement of fixed assets in serve of activities of VAMC in the principle of equipping in line with the operational need of VAMC, efficiency, thrifty and observance with provisions of state applicable to the one-member limited companies of which 100% of charter capital is owned by State regarding investment in fundamental construction and procurement of fixed assets.
2.4. VAMC shall be only used capital for outside investment (Do not through the purchase and sale of debts and assets) under the following forms:
a) Sending money at the State commercial banks;
b) Participating in capital contribution, share purchase as prescribed at Point g, Clause 1, Article 2 of the Decree No.53/2013/ND-CP.
2.5. To repair, upgrade the security assets which VAMC has collected from debts as prescribed at Point d, Clause 1, Article 12 of Decree No. 53/2013/ND-CP, with the aim to increase value, facilitate for handling assets for recovery of debts.
2.6. VAMC may use capital for investment, or provide loans to customers in order to handle temporary financial difficulties and recovery of production and business as prescribed at Clause 3 Article 17 Decree 53/2013/ND-CP.
3. VAMC shall deduct and set up risk provisions in its operational costs as prescribed in Article 4 of this Circular.