Phu Tho: Restructuring credit institutions associated with bad debt settlement in the period of 2021 – 2025

DNHN - Recently, Phu Tho Provincial People's Committee issued Plan No. 2633/KH-UBND on actions to implement the Project "Restructuring the system of credit institutions associated with bad debt settlement in the period of 2021 - 2025 for the People's Credit Fund".

The specific objective is to develop the people's credit fund (PCF) system by the objectives and principles of the cooperative type of credit institution by the provisions of law and international practices; safe, efficient, stable and sustainable operation to meet capital requirements, improve access to finance of PCFs members, towards the main goal of mutual assistance and help among members to serve production and business to improve lives, especially in rural, remote and difficult areas.

Group of solutions to restructure credit institutions: continue to correct and strengthen the quality and effectiveness of PCFs (especially weak PCFs) to ensure that PCFs operate by the objectives and principles of the cooperative type of credit institution, improving the safety, efficiency, stability and sustainability of the people's credit fund, by the needs, size, location, and economic growth.

In which, reviewing, evaluating and classifying PCFs into two groups: a group of PCFs operating normally; The group of PCFs is weak and has potential risks that may affect the safety of banking operations, security and social order in the locality.

For some weak PCFs, especially controlled PCFs of small size (low volume of deposits and depositors) or PCFs that have no deposits or have deposited within the payment limit of the deposit insurance, have may consider allowing pilot handling of these PCF's legal entities through the bankruptcy plan after fully assessing the impact and risk on political security and system safety.

Group of solutions to deal with bad debts: Assess the quality and ability to recover debts to take appropriate handling measures; make setting up and use of risk provisions to deal with bad debts according to the provisions of law; supplement and complete legal documents of collateral assets (collateral); debt recovery and settlement of collateral; tight control and reduce operating costs; continue to implement measures to prevent and minimize bad debts arising and improve credit quality.

Actively coordinate with local authorities and competent state agencies, especially Public Security agencies, People's Courts, and judgment enforcement agencies at all levels in the process of handling collateral for debt recovery, to ensure maximum debt recovery.

PV