Proposal to add regulations on special loans with 0% interest rate and no collateral

On the afternoon of May 20, during a discussion at the Group on the draft Law on Credit Institutions (amended), many National Assembly deputies raised concerns about regulations related to special loans without collateral and the right to seize collateral, which if not clearly regulated will lead to abuse or legal consequences.

Overview of the discussion session at Group 4

Worry about abuse of 0% loans without collateral

Delegate Nguyen Thi Yen (Ba Ria - Vung Tau Delegation) analyzed: The draft law unifies the authority to grant special loans with 0% interest rate from the Prime Minister to the State Bank, which is necessary to shorten the process. However, the assignment of authority to the Governor of the State Bank or the State Bank organization needs to be clarified.

Notably, delegate Nguyen Thi Yen cited: In just 29 months (October 1, 2022 - February 28, 2025), up to VND 67,000 billion was disbursed under special loans with an interest rate of 0%/year and a specially controlled credit institution. With an interest rate of 0% and no collateral, this loan poses great risks to the budget and the entire financial system.

Delegate Nguyen Thi Yen gave comments at the Group.

“ I propose that it is necessary to add a special regulation on unsecured loans that only applies to credit institutions with a systemic role, facing the risk of collapse that could cause insecurity in the banking system. At the same time, it must be accompanied by strict post-inspection conditions, ” Ms. Yen said.

Legalizing the right to seize: If not transparent, it will 'criminalize civil relations'

Regarding the right to seize secured assets, delegate Nguyen Thi Yen expressed concern about the current reality of debt settlement: "The draft stipulates that credit institutions and debt trading and settlement organizations have the right to seize secured assets when there is an agreement in the security contract, provided that the assets are not subject to judicial measures, judgment enforcement, and there is a 15-day public announcement...".

The delegate said that the above regulation is not clear, for example, in case of disputes or obstruction from the guarantor or the resident, what are the legal responsibilities and specific rights of the local authorities and the commune-level police force? Therefore, the delegate suggested that it is necessary to consider adding regulations on coordination between credit institutions and local authorities to avoid complaints arising, leading to criminalization of civil acts.

Commenting on the draft law, delegate Hoang Minh Hieu (Nghe An Delegation ) agreed with the policy of decentralizing power to the State Bank in special lending, but warned that decentralization needs to be linked with power control.

Delegate Hoang Minh Hieu (Nghe An Delegation)

According to delegates, it is necessary to clearly define the approval process for unsecured loans to avoid abuse.

Regarding the right to seize property, Mr. Hieu stated that the draft only stipulates a notification period for real estate, but not for movable property. “ The seizure of movable property also requires a notification period to ensure the rights of the people involved, ” he said, and suggested adding a clear notification period.

Giving comments at the Group, delegate Nguyen Viet Ha (Tuyen Quang Delegation) said that handling bad debt must ensure harmony between the interests of credit institutions and the people.

Delegate Nguyen Viet Ha (Tuyen Quang Delegation)

Regarding the regulation on public disclosure of information on seizure of secured assets in the form of movable property (Clause 4, Article 198a), the delegate proposed to remove the phrase “person holding the secured assets” because it is difficult to determine in practice and is inconsistent with the regulation on notification to the guarantor. At the same time, Clause 5 needs to add the subject “person holding the assets” because there are many cases where the assets are not managed by the guarantor himself.

Regarding transitional cases, delegates said it is necessary to clarify whether the new regulations on bad debt handling apply to debts arising before the law takes effect.

Thu Huong

Source: https://congthuong.vn/de-xuat-bo-sung-quy-dinh-cho-vay-dac-biet-lai-suat-0-khong-co-tai-san-bao-dam-388504.html