Headlines 23/05/2017 16:16 CH

Reserve price of a bad debt sold at auction has to be assessed

Phương Uyên

On May 16, 2017, the Government issued the Decree No. 61/2017/ND-CP providing details of Clause 4 Article 65 of the Law on Asset Auction in terms of assessment of the reserve price of bad debt and asset put up as security for bad debts.

Pursuant to this Decree, the followings will be subject to assessment of the reserve price:

- A bad debt that is purchased at the price equal to its book value by the Asset Management Company through its issue of a special bond with a requirement that, upon determination of its reserve price, the Asset Management Company fails to reach an agreement on that reserve price with the debt-selling credit institution.

- A bad debt that is purchased by the Asset Management Company at the market price.

- An asset that is pledged as security for a bad debt with a requirement that, upon determination of its reserve price, the Asset Management Company fails to reach an agreement on such reserve price with the guarantor on the reserve price.

Selection of an accredited enterprise carrying out assessment in the aforesaid cases will be subject to regulations laid down in Article 5 of this Decree.

The Decree No. 61/2017/ND-CP will enter into force from July 1, 2017 and repeal Clause 1 Article 27 of the Decree No. 53/2013/ND-CP .

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