On December 27, 2013, the Ministry of Finance promulgated Circular No. 209/2013/TT-BTC on guiding the financial regulations applicable to Vietnam Asset Management Company (VAMC) for credit institutions, which 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 and related legal documents.
Accordingly, VAMC shall be entitled to use operational capital to serve for business operation as prescribed by the law, concretely: Special bonds which are issued by VAMC in accordance with regulations of the State Bank of Vietnam 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; VAMC may use its lawful capital sources, exclusive of special bonds, in order to buy bad debts at the market price as prescribed by the law; 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…
Profit of VAMC shall be equal to total revenues arising in the period minus total reasonable expenses arising in the period in accordance with regulations; be distributed after finishing financial duties to State as prescribed by law and offsetting losses of previous years; the remaining profit of VAMC shall be appropriated 30% into fund for development investment; be appropriated into fund for awarding managers of VAMC, the commendation and welfare funds, which shall comply with legislations on appropriation of fund for awarding managers of VAMC. The remaining profit (if any) after appropriation shall be submitted to the Support Fund for arrangement and development of enterprises.
This Circular takes effect on February 15, 2014.
Download here: 54946_209-2013-TT-BTC
Source: www.luatvietnam.vn
