THE MINISTRY OF FINANCE RECOMMENDS FOR A SET OF CREDIT VALUATION STANDARDS

Organizations and individuals requesting valuation are responsible for the accuracy and truthfulness of documents and records to be collected in debt valuation.

The Ministry of Finance is collecting comments on the draft Circular promulgating the Credit Debt Valuation Standard.

According to the draft, organizations, and individuals requesting valuation are responsible for the accuracy and truthfulness of documents and records to be collected in debt valuation, including:

1. Legal documents of debtors.

2. A loan application file includes a credit contract or credit extension agreement, a debt receipt agreement, and an appendix to the credit contract (if any).

3. Certification of the organization or individual requesting appraisal of the amount of principal, interest, and other financial obligations related to the debt that the debtor has not yet paid under the credit contract or credit extension agreement, debt receipt agreement, credit contract appendix (if any) at the time of valuation.

4. Script to sell or liquidate the debt. Financial and business records (if any) of the debtor.

5. Loan security documents include legal documents of collateral, guarantee commitment, papers, and documents related to the process of receiving security (if any).

6. Other relevant documents (if any) include the creditors assessment report related to the debt settlement (legal documents, factors affecting debt collection, time, and possibility of debt collection). debt recovery capacity); report on the book value of the debt, business operation capacity, and financial capacity of the debtor; report assessing risks that may arise in the sale of debt, payment method, and debt transfer.

7. Other relevant documents.

Debt value is determined based on one or more of the following bases:

- Debt balance at the time of valuation at the applicable interest rate on the credit contract or credit extension agreement, debt receipt agreement, credit contract appendix (if any) of the requesting organization or individual. price appraisal request;

- Value of collateral;

- Value of amounts that can be recovered from debtors;

- Interest is expected to arise until the full value of the purchased debt is paid at the applicable interest rate specified in the credit contract or credit extension agreement, debt receipt agreement, or credit contract appendix. application (if any) or other interest rates that may apply to debtors…

The methods applied in debt valuation activities belong to approach from the market, approach from cost, and approach from income as prescribed in the Vietnam Valuation Standard System or using a combination of approaches specified in Article 11, Article 12, Article 13, and Article 14 of this Standard.

The debt valuation methods are selected based on the value of the debt valuation and the assessment of the debts recoverability at and after the time of valuation through loan documents and records, commitments, and terms between the debtor and the creditor, the assessment of the debtors ability to collect debts and other relevant factors.