On May 16, 2017, the Government issued the Decree No. 61/2017/ND-CP stipulating on appraisal of the reserve price of nonperforming loans, collateral of nonperforming loans and establishment of the Council for auction of nonperforming loans, collateral of nonperforming loans for high value nonperforming loans, collateral of nonperforming loans.
Accordingly, cases that reserve price, collateral of nonperforming loans must be appraised. Nonperforming loans that are purchased by Asset Management Company according to the book value by special bonds when determining reserve price for auction, Asset Management Company fails to reach an agreement with credit institutions on reserve price. Nonperforming loans that are purchased by Asset Management Company at market price and collateral of nonperforming loans when determining reserve price for auction, Asset Management Company fails to reach an agreement with the Guarantor on reserve price.
If reserve price of nonperforming loans, collateral of nonperforming loans are appraised, Asset Management Company shall determine reserve price of nonperforming loans, collateral of nonperforming loans when auctioning at the first time according to the principle that the reserve price is not lower than the price of nonperforming loans, collateral of nonperforming loans according to appraisal results. If auction of nonperforming loans, collateral of nonperforming loans fails, for auction nonperforming loans purchased by Asset Management Company at the market price, Asset Management Company shall decide reserve price of nonperforming loans. If Asset Management Company decides to reduce the reserve price, each time of reduction should not be over 10% of the reserve price of the previous auction.
This Decree takes effect on July 01, 2017.
Source: http://english.luatvietnam.vn/default.aspx?tabid=720
