In 2024, amidst a complex and intertwined economic environment influenced by both domestic and international markets, credit management in the province faced certain challenges. To restructure credit institutions and address bad debts, Quang Ninh province directed and implemented numerous specific solutions.
The State Bank of Vietnam (SBV) Quang Ninh branch is the focal agency coordinating with departments, sectors, and localities to advise the province on the implementation of the project "Restructuring the system of credit institutions associated with handling bad debts in the period 2021-2025" to support credit institutions in effectively restructuring and handling bad debts, improving operational quality, promoting production and business, creating jobs, and improving people's lives.
Specifically, in implementing tasks and solutions for handling bad debts, the State Bank of Vietnam's Quang Ninh branch directed credit institutions in the province to implement measures to prevent and limit the 발생 of bad debts and improve credit quality. At the same time, it strictly implemented the expansion of credit to serve socio-economic development while simultaneously improving credit quality; prioritizing the inspection, review, and assessment of debt repayment capacity, especially for bad debts, thereby proactively coordinating with relevant agencies in handling bad debts and handling collateral assets to recover debts... Accordingly, in the first 10 months of 2024 alone, credit institutions in the province processed 2,032.3 billion VND of bad debts, including urging customers to repay 1,531.1 billion VND; using the risk management reserve fund of 241.6 billion VND; and selling collateral assets to recover 1.2 billion VND. The amount collected through enforcement agencies was 5.5 billion VND; 51 billion VND was sold through VAMC, and 190.9 billion VND was collected through other means.
Furthermore, localities within the province, as well as the People's Procuracy, People's Court, Provincial Police, the Provincial Steering Committee for Civil Judgment Enforcement, and the Provincial Civil Judgment Enforcement Department, continue to implement professional measures, expedite the investigation, prosecution, trial, and enforcement of judgments related to bank credit. This has facilitated credit institutions in handling bad debts, processing collateral assets, and assisting in administrative procedures related to the registration of mortgages on land use rights and assets attached to land, and the cancellation of mortgage registrations on land use rights and assets attached to land.
In addition, efforts to ensure security and order in handling bad debts and seizing collateral for bad debts in the locality were also strictly implemented in accordance with the law. In 2024, 394 cases related to credit and banking enforcement were processed, totaling 1,882.9 billion VND.
Departments and localities have also intensified the review of outstanding debts for basic construction projects to ensure compliance with regulations. In 2024, the Provincial People's Committee processed the debt write-off for one loan from the provincial budget, entrusted through the Provincial Branch of the Social Policy Bank, to a customer under the job creation support loan program.
Along with various solutions to handle bad debts, credit institutions in the province have also proactively managed interest rates flexibly and promptly to alleviate difficulties, expand credit programs, and increase access to capital for people and businesses, especially after typhoon No. 3. To support credit growth in important sectors of the economy, many banks have intensified efforts to reduce lending interest rates for priority sectors such as agriculture , exports, industry, services, and small and medium-sized enterprises. Many banks have reduced lending interest rates by 1-1.5% per year compared to the end of 2023. To support people and businesses affected by typhoon No. 3 in overcoming difficulties and restoring production, banks have restructured repayment terms for 14,510 customers with outstanding loans of 1,032 billion VND. Interest rates were reduced for 5,763 customers with a total outstanding loan balance of VND 18,917 billion, with reductions ranging from 0.5-2% per year; new loans were granted to 7,540 customers, with a total loan amount of VND 3,050 billion...
Recently, Prime Minister Pham Minh Chinh signed Official Dispatch No. 135/CD-TTg (dated December 16) on continuing to strengthen measures to manage interest rates and credit. Specifically, it requires the State Bank of Vietnam to focus on directing and managing interest rates, exchange rates, credit growth, and strictly controlling deposit interest rates of commercial banks… to meet the capital needs of the economy during the end of the year, the Lunar New Year (Year of the Snake), and from the early months of 2025, to alleviate difficulties for people and businesses, and to ensure that credit capital is injected into the economy in the most effective and substantial way. Furthermore, credit institutions should focus lending on production and business sectors, priority areas, and traditional economic growth drivers such as investment, consumption, exports, and new growth drivers such as digital transformation, green transformation, climate change adaptation, circular economy, sharing economy, science, technology, and innovation; strictly control lending to risky sectors, ensuring safe and efficient credit operations; and focus on implementing appropriate and effective solutions to handle bad debts of the credit institution system, prevent the 발생 of bad debts, and ensure the safety of the credit institution system's operations.
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