COAMC Disposes of 18.8 Billion Yuan Non-performing AssetsThe China Orient Asset Management Corporation (COAMC) has completed the disposal of 18.8 billion yuan in non-performing assets (NPAs) stripped off from the Bank of China by year 2000, sources with COAMC said on January 12.Sun Changji, president of COAMC, said at the company's annual conference that a total of 1.3 billion yuan in cash had been collected by the corporation so far, "creating a good start" for the overall disposal of NPAs this year. As a wholly state-owned financial institution, COAMC was established to shoulder the responsibility of taking over, managing and disposing of the NPAs stripped off from the Bank of China, aiming to dissolve the potential financial risks and reinforce the reform of the state-owned enterprises. By June 2000, COAMC had the NPAs purchasing process. Those assets, totaling 267.4 billion yuan, represents bad loans from 60, 948 accounts owned by 20,000-plus debtors, Sun said. "The company will focus on managing and disposing of the NPAs in 2001," said Sun, adding that measures will be taken to enhance cooperation with professionals and intermediaries both at home and abroad to find sound solutions for the task. Ways to handle the NPAs may include asset sales, restructuring, leasing, debt-to-equity swap and securitization, Sun added. |
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