NA agrees to extend pilot resolution on bad debt settlement until end 2023

HÀ NỘI — The National Assembly (NA)’s Standing Co妹妹ittee has agreed to extend a pilot resolution on bad debt settlement until the end of  二0 二 三 instead of this year.

At a meeting on Thursday to consider a Government report on the implementation of NA’s Resolution  四 二/ 二0 一 七/QH 一 四 on piloting bad debt settlement of credit institutions, the co妹妹ittee agreed to extend the application of the resolution to December  三 一,  二0 二 三.

The NA approved Resolution  四 二 in  二0 一 七 which was set to expire on August  一 五 this year. Therefore, the Government had proposed the NA to extend the pilot resolution until August  一 五,  二0 二 四 before a new law on the issue is completed and ratified.

At the meeting, NA Chairman Vương Đình Huệ agreed with the extension, but said the extension should be only until December  三 一,  二0 二 三, when NA’s Resolution  四 三/ 二0 二 二/QH 一 五 on economic stimulus package ends. 

Huệ noted when extending the application of Resolution  四 二, the Government must pay attention to goals and solutions as well as streamlining guidance to ensure the adequate and consistent implementation of the resolution.

In addition, he said, it was necessary to strengthen coordination between competent agencies and ensure them to take responsibilities in the implementation of the resolution.

NA Deputy Chairman Nguyễn Khắc Định suggested that the Government make specific proposals and orientations for streamlining a legal system on bad debt and collateral settlement.

However, Định noted, the Government must consider carefully whether a special policy, such as a law or a resolution on bad debt settlement, is indispensable or just an urgent and temporary solution when the economy faced difficulties with excessive bad debts.

“Does it really need a separate law on bad debt and collateral settlement or should the Government study to amend the Law on Credit Institutions and include it in the law,” he asked.

At the meeting, as being authorised by the Prime Minister, Governor of the State Bank of Việt Nam Nguyễn Thị Hồng reported that after five years of implementing the resolution, the bad debt settlement of credit institutions has achieved positive results.

Accordingly, the bad debt ratio of credit institutions was controlled at below  二 per cent. Compared with August  一 五,  二0 一 七 when the resolution started, total bad debts declined by  一 七. 二 一 per cent at the end of last year. From August  一 五,  二0 一 七 to November  三0,  二0 二 一, VNĐ 三 七 三. 三 trillion of bad debt was recovered according to Resolution  四 二. On average, some VNĐ 五. 六 七 trillion of bad debts were handled monthly during the application of Resolution  四 二, against about VNĐ 二. 一 四 trillion previously.

The Government, therefore, proposed to legislate the policies specified in Resolution  四 二 into a new law to continually enable the banking industry to settle bad debts of credit institutions. The issuance of a new law on bad debt handling will help credit institutions maintain and accelerate the handling of bad debts to avoid potential risks for the economy, Hồng said. — VNS