PHNOM PENH, Feb. 26 (Xinhua) -- Cambodia's central bank, the National Bank of Cambodia (NBC), has set out conditions for the establishment of asset management institutions (AMIs), said an NBC edict publicized on Thursday.
Any person applying for an AMI license will be required to have a minimum registered capital of 200 billion riels (50 million U.S. dollars).
NBC Governor Chea Serey said the edict aimed to establish a regulatory framework for the AMIs through the acquisition and management of non-performing loans (NPLs) and collateral from banks and financial institutions (BFIs).
"The AMI shall have a minimum registered capital of 200 billion riels," she said. "The license is valid for five years and can be renewed."
Before commencing its operation, the AMI must pay 100 percent of its registered capital into the account maintained with the central bank, she said, adding that the AMI is required to pay 50 million riels (12,500 U.S. dollars) for annual license fees.
The licensed AMI can engage in business activities such as acquiring and managing NPLs, including associated collateral from BFIs, she said, adding that it can acquire and manage immovable properties of the BFIs' debtors through auction by court order, provisional administration, or liquidation process.
It can provide debt collection services to BFIs, facilitate the sale of associated collateral with the debtor's consent, and sell loans to BFIs and other AMIs, she said.
Serey said the AMI is prohibited from carrying out activities such as providing loans or refinancing and providing loan guarantees, among others. ■
