Continue to pilot the handling of bad debts of credit institutions

Previously, on June 16, 2022, the 15th National Assembly passed Resolution No. 63/2022/QH15 on the content of the 3rd Session of the 15th National Assembly. Accordingly, the National Assembly agreed to extend the application period of all provisions of Resolution No. 42/2017/QH14 on piloting the handling of bad debts of credit institutions (Resolution No. 42/2017/QH14) from August 15, 2022 to December 31, 2023. In Resolution 63/2022/QH15, the National Assembly requested the Government to have solutions to overcome the difficulties and obstacles mentioned in Report No. 174/BC-CP dated May 11, 2022, and directed to strengthen coordination between agencies and units associated with responsibilities in organizing the implementation of the Resolution, ensuring the effectiveness and efficiency of the Resolution.

Based on the direction of the National Assembly, in addition to continuing to implement Directive 32/CT-TTg dated July 19, 2017 on implementing Resolution No. 42/2017/QH14 on piloting the handling of bad debts of credit institutions, to ensure the effective implementation of Resolution No. 42/2017/QH14 during the extended period of the Resolution, the Government requests Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People's Committees of provinces and centrally run cities to be responsible for directing and implementing a number of tasks.

The Ministry of Justice continues to direct the General Department of Civil Judgment Enforcement to review pending enforcement cases related to the handling of secured assets for debt recovery to focus on and prioritize their resolution to ensure the largest value of secured assets recovered. At the same time, implement the order of priority for payment of court fees in enforcement cases according to the provisions of Resolution No. 42/2017/QH14 and relevant legal provisions. In addition, coordinate with the Supreme People's Court to build a data system related to cases being handled and allowed credit institutions to look up and extract.

The Ministry of Public Security resolutely handles individuals and organizations that violate the law and cause disorder in the process of seizing and handling collateral to recover debts. Thereby, ensuring that debt collection is carried out smoothly and in accordance with legal regulations. In addition, direct the Public Security at all levels to effectively implement the "Working procedure to ensure security and order in the process of seizing collateral according to Resolution No. 42/2017/QH14" to support the maintenance of security and order for credit institutions and the Vietnam Asset Management Company (VAMC) in the process of seizing and handling collateral to recover debts.

The Ministry of Finance continues to implement the order of payment priority as prescribed in Resolution No. 42/2017/QH14 regarding the performance of tax obligations when handling collateral assets of bad debts and relevant legal provisions.

The People's Committees of provinces and centrally run cities continue to issue guiding documents and instructions to local authorities (ward and commune levels) to guide the implementation of Resolution No. 42/2017/QH14 and assign responsibilities to support the process of credit institutions, organizations buying and selling bad debt to implement the plan to seize secured assets. In addition, continue to promote the role of the Steering Committee for Civil Judgment Enforcement and direct local departments, branches and sectors to coordinate effectively in civil judgment enforcement, especially in complicated cases that affect the security and political situation and cases that require the involvement of local departments, branches and sectors.

Ministries and competent authorities direct corporations, companies and member units to fulfill their debt repayment/guarantee obligations for loans that the units guarantee for their subsidiaries and member companies.

The State Bank of Vietnam continues to perform the tasks of the focal unit implementing Resolution No. 42/2017/QH14 in the banking sector. At the same time, it will 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 No. 42/2017/QH14 on piloting bad debt settlement of credit institutions and proposing to improve the legal system on bad debt settlement and collateral.

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