Commenting on the draft Law, delegate Hoang Thi Thanh Thuy - National Assembly Delegation of Tay Ninh province expressed her agreement with the policy of legalizing the regulations on bad debt settlement stipulated in Resolution No. 42/2017/QH14 of the National Assembly on piloting bad debt settlement of credit institutions and removing some obstacles when applying this Resolution. According to delegate Hoang Thi Thanh Thuy, when these regulations were issued, the bad debt settlement of the credit institution system had many positive developments, ensuring the rights of the parties, promoting the initiative and payment of customers. In addition, the regulations on bad debt settlement have reduced the situation of customers deliberately delaying and not cooperating.
According to delegate Hoang Thi Thanh Thuy, bad debts of banks are not a matter of time but are permanent and almost closely linked to the operation of banks. The legalization of regulations on bad debts, on the right to seize assets, on the right to priority payment, etc. will be an important foundation for effectively handling bad debts, creating a true debt trading market. Currently, the draft Law has clearly defined the responsibilities of the competent authorities in each provision, creating a solid corridor for the personnel at these agencies when supporting credit institutions in debt collection.
Delegate Hoang Thi Thanh Thuy - National Assembly Delegation of Tay Ninh province.
However, delegate Hoang Thi Thanh Thuy also recommended that the Drafting Committee should conduct further research on perfecting the provisions of the draft Law or sub-law documents on issues that are currently of great public concern, such as the provisions on procedural law that must be revised in the direction of shortening the time for processing administrative procedures for debt freezing conditions and debts eligible for seizure; at the same time, it is proposed to remove the limitation that the debt is not in dispute and is accepted by the court to avoid cases where customers take advantage of this provision to create fake disputes, leading to delays and preventing the process of seizing secured assets for processing.
Sharing the same concern, delegate Duong Khac Mai - National Assembly Delegation of Dak Nong province pointed out that compared to the draft law submitted at the 6th Session, the draft law at the 5th Extraordinary Session removed the provisions on procedures for seizing secured assets. According to delegate Duong Khac Mai, seizing assets and handing over assets to the buyer after a successful sale encountered many difficulties, lasting for many years and in many cases it could not be implemented because the guarantor and the asset holder did not cooperate, had acts of resistance and filed complaints with competent authorities. At the same time, credit institutions had great difficulty in handling and protecting assets when seizing. To ensure the rights of related parties as well as the implementation of the rule of law by the subjects, delegate Duong Khac Mai suggested that it should be re-studied to be consistent with the regulations.
Delegate Duong Khac Mai - National Assembly Delegation of Dak Nong province.
Agreeing with the proposal of delegate Duong Khac Mai, delegate Pham Duc An - Hanoi National Assembly Delegation added that according to the Government's report summarizing Resolution 42/2017/QH14 and the proposal to extend the application period of the entire Resolution 42, Resolution 42/2017/QH14 is clearly stated as a correct and timely policy of the Party, National Assembly, and Government, helping to handle bad debt more effectively. Therefore, maintaining the policy mechanism in Resolution 42/2017/QH14 and continuing to improve the legal framework for handling bad debt is necessary. The report of the Economic Committee dated May 20, 2022 also stated: Together with the banking sector, relevant ministries, branches, and agencies have stepped in to more strongly promote the handling of bad debt, creating significant changes in the awareness and responsibility of relevant parties since the Resolution took effect. The report also provided statistics that during the period when Resolution 42 was in effect, the ability to recover bad debts increased and in addition, the proportion of bad debt settlement through the form of customers paying debts themselves or voluntarily paying debts increased from 23% to 38%. Thus, in practice, the solutions in Resolution 42, including the measure of assigning credit institutions with the support of competent state agencies to seize assets for handling, are strong and necessary measures, the delegate stated.
Delegate Pham Duc An - National Assembly Delegation of Hanoi City.
Delegate Pham Duc An further analyzed that the seizure of collateral does not create a privilege or benefit for the credit institution but to ensure the common interest, which is social. Sociality is shown in that when bad debt is recovered, there is money to lend to other customers in need. In addition, if bad debt is recovered, it means that the credit institution's profit is increased, then there will be a basis for the credit institution to reduce lending interest rates for other organizations and units. In addition, during the implementation of Resolution 42, there has not been a single case reflecting that credit institutions have abused this provision and caused social impacts. Therefore, Delegate Pham Duc An suggested that the draft Law should retain the provision on procedures for seizure of collateral.
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