Tightly manage bad debt

Improve the efficiency of bad debt handling

National Assembly Chairman Tran Thanh Man speaks at the meeting. Photo: Ho Long

On the morning of April 24, continuing the 44th Session, under the direction of Vice Chairman of the National Assembly Vu Hong Thanh, the National Assembly Standing Committee gave opinions on the draft Law amending and supplementing a number of articles of the Law on Credit Institutions.

Vice Chairman of the National Assembly Vu Hong Thanh chaired the meeting. Photo: Ho Long

Governor of the State Bank of Vietnam Nguyen Thi Hong presented the Proposal for the Law on amending and supplementing a number of articles of the Law on Credit Institutions. Accordingly, the purpose of promulgating the Law is to continue to legalize the provisions of Resolution No. 42/2017/QH14, creating a synchronous legal framework on bad debt handling, ensuring compliance with reality to handle obstacles and difficulties that have been preventing credit institutions, foreign bank branches, debt trading and handling organizations from exercising their legal rights in handling bad debts and collateral of bad debts, indirectly affecting the ability to rotate capital as well as access to credit at reasonable costs for people and businesses.

View of the meeting. Photo: Ho Long

Presenting the Preliminary Review Report of the Law Project, Permanent Deputy Chairman of the Economic and Financial Committee Le Quang Manh said that the majority of opinions agreed with the necessity of promulgating the Law, in order to institutionalize the Party's policies, meet practical requirements on decentralization of authority to decide on special loans; improve the efficiency of handling bad debts and collateral of credit institutions, contributing to unblocking credit resources to serve the goal of economic growth. Many opinions suggested considering continuing to pilot the implementation of the 3 policies proposed in this Law Project.

Chairman of the Ethnic Council Y Thanh Ha Nie Kdam speaks at the meeting

The Standing Committee of the Economic and Financial Committee proposed to clarify some contents such as: Political, legal and practical basis for legalizing the provisions in Resolution No. 42/2017/QH14; in which, regarding the political basis, it is proposed to report and ask for opinions from competent authorities because the handling of secured assets is directly related to citizens' property rights; constitutionality, legality, consistency with the legal system and relevant international treaties; proposed policies need to be thoroughly and comprehensively assessed for their impact on relevant parties; supplement international experience on legal regulations in handling bad debts and collateral of bad debts for reference, and propose solutions suitable to Vietnam's legal system.

Quantifying the impact of three proposed legal policies

Standing Deputy Chairman of the Economic and Financial Committee Le Quang Manh presented the Preliminary Review Report of the Law Project. Photo: Ho Long

National Assembly Chairman Tran Thanh Man agreed with the legalization of regulations in Resolution No. 42/2017/QH14 on piloting bad debt settlement of credit institutions, and at the same time proposed continuing to identify and have plans to overcome limitations since summarizing the implementation of Resolution No. 42/2017/QH14 to amend and supplement an article of the Law on Credit Institutions.

Permanent Deputy Head of the People's Aspirations and Supervision Committee Le Thi Nga speaks at the meeting. Photo: Ho Long

Noting that bad debt has increased in the recent period, the National Assembly Chairman suggested defining the policy scope to determine the loan amount in accordance with regulations, avoiding credit institutions loosening lending conditions; the State Bank of Vietnam must strictly manage bad debt.

Concluding the discussion, Vice Chairman of the National Assembly Vu Hong Thanh stated that the National Assembly Standing Committee basically agreed with the policies proposed by the Government.

Governor of the State Bank of Vietnam Nguyen Thi Hong presents the Draft Law. Photo: Ho Long

The Vice Chairman of the National Assembly suggested that the Government continue to direct relevant agencies to clarify 8 more groups of contents: Political basis, practical basis; assessment of the current situation, causes of bad debt, urgency, necessity of handling bad debt; quantifying the impact of 3 policies proposed to be legalized on handling bad debt; Proposed policies need to be assessed for impact thoroughly and comprehensively, regulations need to be ensured to be complete, transparent, objective, humane, feasible, ensuring the rights and legitimate interests of the parties, avoiding administrativeization of civil and economic relations; reviewing the scope of application of 3 policies proposed to be legalized, ensuring that they only apply to loans in accordance with regulations, avoiding the situation of loosening lending conditions...

H. Ngoc

Source: https://daibieunhandan.vn/quan-ly-chat-che-no-xau-post411270.html