Avoid the "ask-give" mechanism to borrow 0% interest rate

Need to tightly control cash flow when lending at 0% interest rate

According to the draft law, the power to decide on unsecured loans with a special interest rate of 0% per year could be transferred from the Prime Minister to the State Bank.

Delegate Nguyen Hai Nam - Thua Thien Hue delegation said that these loans enjoy 0% interest rate, while outside the interest rate is 4 - 5%. So when can this loan be borrowed? There must be specific regulations on conditions and criteria for lending, to avoid the situation of "asking - giving" mechanism.

Delegate Hoang Van Cuong - Hanoi delegation said that the draft adjustment to give power to the bank governor is very suitable with the spirit of decentralization, but to avoid taking advantage of the 0% loan rate while the budget still has many things to worry about, there must be clear regulations on which cases are eligible for 0% interest loans.

Delegate Hoang Van Cuong - Hanoi delegation

"It is necessary to clearly define the State Bank's responsibility in controlling cash flow to avoid falling into a risky situation. Accordingly, the State Bank is given the right to make decisions, but it must also be responsible," said Mr. Cuong.

Similarly, delegate Thach Phuoc Binh - Tra Vinh delegation said that the decision to grant special 0% interest loans by the management agency could be emotional if the bill does not clearly state the criteria and conditions for credit institutions to borrow.

There should be more complaints mechanism if bad debt handling is illegal

According to the draft law, credit institutions and debt trading and handling units are entitled to seize collateral of bad debts. The draft law stipulates that during the implementation process, credit institutions are not allowed to apply measures that violate the prohibitions of the law or are contrary to social ethics.

Major General Nguyen Quoc Hung, Deputy Chairman of the National Defense, Security and Foreign Affairs Committee, expressed concern that the scope and conditions of seizure by credit institutions, as well as the role of state agencies, have not been clearly stated.

According to him, the drafting agency must add regulations on the coordination responsibilities of the parties in handling bad debts. The seizure of assets must be public and transparent, avoiding harming the legitimate interests of borrowers.

"Do not violate the legitimate rights of individuals such as residence, private life, personal secrets, and family secrets in the confiscation of these assets," the delegate proposed, emphasizing that the bill needs to have a mechanism for inspection and supervision by the State Bank in handling assets of credit institutions.

Delegate Thach Phuoc Binh - Tra Vinh delegation

Delegate Thach Phuoc Binh - Tra Vinh delegation suggested that there should be supervision by local authorities and management agencies when banks seize and handle collateral assets, so as not to infringe on the rights and other assets of the borrower. "There should be an additional complaint mechanism if the seizure of assets by credit institutions is illegal," he emphasized.

Regarding the handling of bad debts, delegate Nguyen Hai Nam stated that in reality, in Vietnam, there is a situation where banks abuse their right to seize collateral. While the Constitution stipulates that the right to privacy and issues related to human rights must be guaranteed, the handling must be fair to the interests of all parties.

He gave an example of asset valuation in the Tan Hoang Minh case. If the valuation was done when the company was in difficulty, it would be very cheap, while if the market improved, it would be at a better price. With the valuation, the company suffered a lot. Therefore, he said that the valuation principle must not be unethical and must ensure the right to seize collateral. The court must be the last place to protect justice.

According to plan, at this session, the National Assembly will discuss this bill in the hall on May 29 and vote to pass it on June 17.

Source: https://phunuvietnam.vn/tranh-xay-ra-co-che-xin-cho-de-vay-lai-suat-0-20250520193046388.htm