Unleashing credit resources to serve economic growth

View of the meeting of the National Assembly Standing Committee.

On the morning of April 24, the National Assembly Standing Committee gave opinions on the draft Law amending and supplementing a number of articles of the Law on Credit Institutions.

Briefly presenting the report, Governor of the State Bank of Vietnam Nguyen Thi Hong said that the continued legalization of the provisions in Resolution No. 42/2017/QH14 aims to create a synchronous legal framework on bad debt handling, ensuring compliance with reality to handle the 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.

Governor of the State Bank of Vietnam Nguyen Thi Hong speaks

Briefly presenting the review report, 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.

Mr. Le Quang Manh proposed to clarify the 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.

At the same time, clarify that the 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.

At the meeting, the majority of opinions agreed on the necessity of promulgating the Law 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, and contribute to unblocking credit resources to serve the goal of economic growth.

National Assembly Chairman Tran Thanh Man speaks

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.

The National Assembly Chairman proposed defining the policy scope to determine loan debt in accordance with regulations, avoiding credit institutions loosening lending conditions; the State Bank of Vietnam must strictly manage bad debt.

Basically agreeing with the policies proposed by the Government, Vice Chairman of the National Assembly Vu Hong Thanh suggested that the Government continue to direct relevant agencies to clarify the following 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 the 3 policies proposed to be legalized on handling bad debt; the proposed policies need to be assessed for their 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 the administrativeization of civil and economic relations; reviewing the scope of application of the 3 policies proposed to be legalized, ensuring that they only apply to loans in accordance with regulations, avoiding the situation of loosening lending conditions./.

According to VNA

Source: https://baobinhduong.vn/khoi-thong-nguon-luc-tin-dung-phuc-vu-tang-truong-kinh-te-a345941.html