BUYING AND SELLING DEBTS AND THE DEALING WITH BAD DEBTS – PRACTICAL EXPERIENCES FROM DIFFERENT COUNTRIES

Abstract

Developing the market for debt trading and dealing with bad debts is one of the essential measures to restructure the credit portfolios, improve the quality of credit, create more liquidity and increase income for the banks and several organizations engaging in debt trading services. However, there is no real debt trading market in Vietnam yet, therefore it has been only the banks’ debt trading with some drawbacks. This article reviews previous studies about the experiences of debt dealing and debt trading in some certain countries and draws policy implications in order to enhance the legal environment and organize the market associated with the debt trading and bad debt settlement through the banking system in Vietnam.