Sacombank’s permanent vice chairman Tram Be is required to leave the bank by October 30 and deal with debts he is responsible for, according to a statement issued by the State Bank of Vietnam (SBV).

The statement also says Sacombank must hold an extraordinary general meeting before December 15.

A source from the SBV told the Daily that the document has been sent to the HCMC-based bank on October 27 and that Sacombank’s restructuring has accelerated. The central bank is picking people to sit on Sacombank’s board of directors.     

As part of the restructuring process, Sacombank must review debts owed by a group of investors in connection with Tram Be and assess the value of assets used as collateral for loans so as to increase the bank’s assets if necessary. In addition, the lender must set out a specific timeline to settle debts. 

The SBV said it will support Sacombank to maintain operations.

Before Southern Bank was merged into Sacombank, the latter was considered one of the leading credit institutions in Vietnam with an extensive network, good corporate governance and a large number of customers. 

Asked why Sacombank should organize an extraordinary general meeting before December 15 instead of within November as earlier planned, the source said this is in line with the current regulations on the stock market as Sacombank is a listed firm.

Sacombank shares are traded on the Hochiminh Stock Exchange, so Southern Bank shares are being swapped for Sacombank shares from October 1 to November 1. Sacombank will have at least 10 days to close the list of its shareholders and can organize an extraordinary meeting for shareholders at least 30 days after the date of closing the list.

According to procedures, Tram Be writes a letter of resignation which should be accepted by Sacombank’s board and will be sent to the central bank for approval. However, his resignation must be endorsed at the general meeting, the source explained.

SGT