Continue to remove difficulties and obstacles in piloting bad debt handling of credit institutions in Vietnam

Continue to remove difficulties and obstacles in piloting bad debt handling of credit institutions in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On September 20, 2023, the Government issued Resolution 148/NQ-CP to continue implementing Resolution 42/2017/QH14 on the piloting of bad debt handling by credit institutions.

Continue to remove difficulties and obstacles in piloting bad debt handling of credit institutions in Vietnam

Specifically, the Government requires Ministers, Heads of ministerial-level agencies, Heads of Government agencies, and Chairmen of People's Committees of provinces and centrally run cities to be responsible for directing and implementing measures to remove difficulties and obstacles related to pilot bad debt handling of credit institutions as follows:

(1) Ministry of Justice:

- Continue to direct the General Department of Civil Judgment Enforcement to review outstanding judgment enforcement cases related to the handling of collateral for debt recovery to focus and prioritize a complete resolution to ensure the maximum value of assets recovered; at the same time, implement the order of priority for payment of court fees in judgment enforcement cases according to the provisions of Resolution 42/2017/QH14 and relevant legal regulations.

- Coordinate with the Supreme People's Court to build a data system related to cases being processed and allow credit institutions to look up and extract.

(2) Ministry of Public Security:

Resolutely handle individuals and organizations that violate the law and cause insecurity during the process of seizing and handling security assets to recover debt; ensure that the seizure and processing of collateral for debt recovery take place smoothly, according to the law.

- Direct police at all levels to effectively implement the "Working process for ensuring security and order during the process of seizing secured assets according to Resolution No. 42" to support the maintenance of security and order for credit institutions and VAMC during the process of seizing and handling security assets to recover debt according to Resolution 42/2017/QH14.

(3) Ministry of Finance:

Continue to implement the payment priority order as prescribed in Resolution 42/2017/QH14 related to the implementation of tax obligations when handling security assets of bad debts and relevant legal regulations.

(4) People's Committees of provinces and centrally run cities:

- Continue to issue guidance and direction documents to local government levels (ward and commune levels) to guide implementation according to Resolution 42/2017/QH14 and assign responsibilities to support the process of credit institutions and organizations buying and selling bad debts to implement plans to seize secured assets;

- Continue to promote the role of the Steering Committee for Civil Judgment Enforcement and direct departments, branches, and branches in the area to coordinate effectively in special civil judgment enforcement work for complex cases affecting the security and political situation and cases requiring the involvement of local departments and branches.

(5) Ministries and governing agencies: Direct corporations, companies, and member units to fulfill debt repayment obligations/guarantee obligations for loans that the units guarantee for subsidiaries and member companies.

(6) State Bank of Vietnam:

- Continue to perform the tasks of the focal unit implementing Resolution 42/2017/QH14 in the banking industry.

- Implement the solutions stated in Appendix 01 attached to Report No. 174/BC-CP dated May 11, 2022 of the Government summarizing the implementation of Resolution 42/2017/QH14 on piloting bad debt handling of credit institutions and proposing to improve the legal system on handling bad debts and collateral assets.

More details can be found in Resolution 148/NQ-CP, dated September 20, 2023.

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