At the National Assembly Standing Committee’s tenth session
Governor of the State Bank Nguyen Thi Hong made the statement at the National Assembly Standing Committee’s tenth session in this morning at the National Assembly House. Speaking at the opening session, National Assembly Chairman Vuong Dinh Hue reviewed the main contents of the program. meeting agenda.
The National Assembly Standing Committee commented on the Government's report summarizing the implementation of Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly on piloting bad debt handling of credit institutions, the state budget settlement report in 2020 including the annual report on debt settlement results according to Resolution No. 94/2019/QH14, state financial report 2020.
The Government proposes to extend the application period of all provisions of Resolution 42 by two years until August 15, 2024, without proposing to amend or supplement any provisions of the resolution.
Accordingly, the Standing Committee of the National Assembly gave opinions on five bills including the Petroleum Law (amended), the Law on Domestic Violence Prevention and Control (amended), the Law amending and supplementing a number of articles of Law on Radio Frequency, the Law on Inspection (amended), the Law on Medical Examination and Treatment (amended) and expected law and ordinance development program in 2023, adjusted law and ordinance development program in 2022.
The Standing Committee of the National Assembly listened to the Governor of the State Bank Nguyen Thi Hong presenting the Government's report summarizing the implementation of the National Assembly’s Resolution No. 42/2017/QH14 dated June 21, 2017 on piloting bad debt at credit institutions.
According to the report, over the past time, the bad debt situation and bad debt handling of credit institutions and foreign bank branches have always received the close attention and direction of the Party, National Assembly, the government, agencies and social organizations, and voters nationwide.
Especially with the National Assembly institutionalizing bad debt settlement through the formulation and issuance of Resolution No. 42/2017/QH14 dated June 21, 2017 on piloting bad debt settlement of credit institutions, shortcomings, and limitations in bad debt handling have been overcome, creating a unified and synchronous legal framework for bad debt handling, removing difficulties and obstacles, assist credit institutions in effectively handling bad debts, ensure that credit institutions continue to promote well their role as the main capital conduit to meet capital needs. for production and business activities of the economy, especially in the context of the Covid-19 epidemic.
Thereby, the bad debt of the system of credit institutions has been handled and controlled and the bad debt ratio on the balance sheet is maintained at less than 2 percent. In addition, the total unresolved bad debts determined according to Resolution No. 42 of the entire system of credit institutions as of December 31, 2021, decreased by 17.2 percent compared to August 15, 2017 when Decree No. 42 took effect
The total number of bad debts treated according to Resolution No. 42 from August 15, 2017, to December 31, 2021, is about VND 2,150 billion a month, higher than the average bad debt settlement result at the time before the Decree No. Decision 42 takes effect.
