Debt Appraisal

22-08-2022

Debt valuation is currently a hot issue that companies and businesses are interested in, especially for banking institutions, the more necessary the analysis and valuation of debt in the current period.

Current debt valuation needs:

Currently, banks have many new bad debts. But unlike before, many new bad debts come from banks increasingly promoting retail banking, expanding lending to private investment and lending to retail and consumer finance. This form of financing is a segment that brings in higher profit margins but carries much higher risks than traditional credit.

In addition, bad debt also includes the outstanding amount of bad debt that has not been completely resolved. In fact, in the past time, banks have actively sold bad debts to the market, but bad debt handling is not simple. Many bad debts have been offered for sale many times, even the banks have reduced the price by a few dozen percent compared to the starting price, but it is still difficult to attract investors.

Therefore, the financial market is looking forward to independent valuation companies with experience in debt appraisal, which accurately reflects the market value of the debt. However, the valuation of debts will be very easy to be inaccurate and not fully reflect the value of the debt if the valuation companies only re-determine the value of collateral assets and that is the value of the debt.

As a professional valuation company, with a lot of experience and reputation in the market, Indochina International Investment & Appraisal Company (INA) always strives to research new issues in price appraisal in general as well. such as debt valuation in particular to make the valuation accurate and most effective.

Cases where bad debt valuation is required:

Decree 61/2017/ND-CP dated May 16, 2017 of the Government detailing the appraisal of the starting price of bad debts, collateral for bad debts and the establishment of the debt auction council bad debt, collateral for bad debt for bad debt, collateral for bad debt of great value.

According to Decree 61/2017/ND-CP, there are three (03) cases where the starting price of bad debt must be appraised, specifically:

- The bad debt was purchased by VAMC at book value with special bonds that, when determining the starting price for auction, VAMC could not reach an agreement with the debt-selling credit institution. on the starting price.

- The bad debt was purchased by the Asset Management Company at market value.

- Security assets of bad debts that, when determining the reserve price for auction, the Asset Management Company cannot agree with the guarantor on the reserve price.

Indochina International Investment & Appraisal Company (INA) is one of the leading prestigious appraisal companies with a nationwide system of branches and offices. In addition, our valuation service Debt Appraisal - SunDebt will give customers the best service experience, customers will be consulted and helped determine the value of each type. assets from which to determine the most reasonable price to help customers best achieve their goals.