Conclusion of the Standing Committee on Bad Debts of the National Assembly

DNHN - The National Assembly Standing Committee agreed to extend the time limit for application of all provisions of Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly on piloting bad debt settlement of credit institutions until December 31, 2023.

The National Assembly Standing Committee unanimously assessed that the issuance of Resolution No. 42/2017/QH14 of the XIV National Assembly on piloting bad debt settlement of credit institutions (Resolution No. 42) was a correct and precise decision of the National Assembly; At the same time, the Committee highly appreciated the efforts of the Government, the State Bank of Vietnam, ministries, branches, central agencies, localities and credit institutions in the past 5 years in organizing the implementation of implementing the resolution, thereby contributing to controlling bad debts below 2%, ensuring the safety of the system of credit institutions.

The National Assembly Standing Committee proposes the Government to study and absorb opinions of the National Assembly Standing Committee and verifying agencies to complete the final report on the implementation of Resolution 42 and the draft dossier. The Resolution extends the application period of Resolution No. 42 in the direction of evaluating the results of the implementation of Resolution No. 42 in comparison with the objectives and requirements when submitting to the National Assembly for approval of the Resolution; analyze and clarify the status of bad debts, the results of bad debt settlement, and more closely evaluate the effectiveness of measures to handle bad debts.

The National Assembly Standing Committee requested to supplement bad debt data determined under Resolution 42 (absolute number and proportion, classified by credit institutions and specific fields), including: total bad debt at the time The resolution is in effect and has been handled; total bad debts arising after the effective date of Resolution No. 42 fall within the scope of the Resolution and have been handled; the total remaining bad debt has not been handled until December 31, 2021. 

There is an analysis of the bad debt situation of credit institutions as of December 31, 2021 and the results of bad debt settlement in general, including handling measures such as making provision for risks, buying and selling debts of credit institutions. ; results of bad debt settlement of Vietnam Asset Management Company (VAMC); clearly report on bad debts in areas such as real estate, securities, consumer credit, corporate bonds, BOT lending; accrued interest, cross-ownership… 

The National Assembly Standing Committee proposed to have a closer assessment of the difficulties, obstacles, shortcomings and weaknesses in the implementation of Resolution No. 42; especially subjective and objective causes, lessons learned; propose remedial solutions when extending the application period of Resolution 42, note the objectives and solutions, complete the instructions for the implementation of the Resolution to ensure completeness and consistency; perfecting the database system on handling property disputes in cases; strengthen the coordination between agencies and units, both central and local; attach the responsibilities of the Government, specific agencies and organizations in the implementation of the Resolution.

Regarding the completion of the legal framework for handling bad debts and collateral, the National Assembly Standing Committee proposed to add to the report on the review of the time for building the legal framework on handling bad debts and collateral assets. guarantee to replace Resolution No. 42; assign specific tasks to agencies to research, propose legalization contents along with reviewing and perfecting the Law on Credit Institutions and other laws related to handling bad debts and collateral assets , to submit to the National Assembly at the latest in the first session of 2023. 

Regarding the draft Resolution extending the application deadline for all provisions of Resolution 42, the National Assembly Standing Committee agreed to add to the 2022 law and ordinance development program the Resolution extending the time limit. apply all provisions of Resolution No. 42; uniformly apply the shortened order and procedures for approving the Resolution according to the process of 01 session at the 3rd session, the XV National Assembly. Assign the Law Committee to carry out procedures as prescribed by law to add content to the 2022 Law and Ordinance Development Program.

The National Assembly Standing Committee agreed to extend the time limit for application of all provisions of Resolution No. 42 to December 31, 2023; include this content in the joint resolution of the 3rd session, the 15th National Assembly. 

The National Assembly Standing Committee assigns the Economic Committee to assume the prime responsibility for, and coordinate with the Ethnic Minority Council and the National Assembly's committees, to study and absorb opinions of the National Assembly Standing Committee, to finalize the main verification report. Report to the National Assembly at the 3rd session. Assign the State Auditor to prepare a report on the implementation of Resolution No. 42 according to the 2022 audit plan. 

 Nguyễn Mai