RESOLUTION

ON FURTHER IMPLEMENTATION OF RESOLUTION NO. 42/2017/QH14 DATED JUNE 21, 2017 REGARDING PILOT DISPOSAL OF BAD DEBTS OF CREDIT INSTITUTIONS

THE GOVERNMENT

Pursuant to the Law on Organization of Government dated June 19, 2015; the Law on amendments to the Law on Organization of Government and the Law on Organization of Local Governments dated November 22, 2019;

Pursuant to Resolution No. 42/2017/QH14 dated June 21, 2017 of the National Assembly on pilot disposal of bad debts of credit institutions.

Pursuant to the Resolution No. 63/2022/QH15 dated June 16, 2022 of the National Assembly regarding the 3rd meeting of the 15th National Assembly;

Pursuant to Decree No. 39/2022/ND-CP dated June 18, 2022 on working regulations of the Government;

At the request of the Governor of the State Bank of Vietnam in the Statement No. 80/TTr-NHNN dated June 5, 2023 and the Statement No. 113/TTr-NHNN dated August 14, 2023;

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HEREBY RESOLVES:

On June 16, 2022, the 15th National Assembly passed Resolution No. 63/2022/QH15 dated June 16, 2022 of the National Assembly regarding the 3rd meeting of the 15th National Assembly.  Subject to the above, the National Assembly has agreed to extend the deadline for applying all provisions of Resolution No. 42/2017/QH14 on pilot disposal 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 requests the Government to take remedial measures against difficulties and problems mentioned in Report No. 174/BC-CP dated May 11, 2022, on strengthening coordination between agencies and units associated with responsibilities in implementing the Resolution, to ensure the efficiency and effectiveness of the Resolution.

Based on the guidance of the National Assembly, in addition to further implementation of Directive No. 32/CT-TTg dated July 19, 2017 on implementation of Resolution No. 42/2017/QH14 on pilot disposal of bad debt 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 Governmental agencies, Presidents of People's Committees of provinces and centrally-affiliated cities (hereinafter referred to as provinces) to direct and perform the following tasks:

1. Propagation and dissemination

a) The State Bank of Vietnam shall require credit institutions, Vietnam Asset Management Company (VAMC), and relevant entities of the State Bank of Vietnam to be fully aware of the extended period of Resolution No. 42/2017/QH14.

b) Ministries, ministerial-level agencies, People's Committees of provinces shall require agencies, units, officials and public employees who perform tasks related to disposal of bad debts and collateral of bad debts of credit institutions and VAMC to be fully aware of the extended period of Resolution No. 42/2017/QH14 .

c) The Ministry of Information and Communications shall publicize and disseminate the contents of Resolution No. 42/2017/QH14 and the extension of its period.

- Direct news agencies, newspapers from central to local levels, grassroots information systems, and Departments of Information and Communications to strengthen their propagation and dissemination to raise awareness of bad debt disposal among all people, so that customers and related parties in debt disposal can consciously and proactively implement it.

- Direct and guide media agencies to regularly hold seminars so that credit institutions can exchange information and experience in dealing with bad debts and disposal of collateral, in order to improve their risk management, collateral disposal, and debt recovery capabilities.

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2. Initiation of remedial measures against difficulties and problems arising during implementation of Resolution No. 42/2017/QH14

a) The Ministry of Justice:

- Continue to direct the General Department of Civil Judgment Enforcement to review outstanding judgment enforcement cases related to collateral disposal for debt recovery, and prioritize complete settlement of these cases to ensure the maximum value of recovered collateral; and also implement the order of priority of payment of court fees in judgment enforcement cases as prescribed in Resolution No. 42/2017/QH14 and relevant laws.

- Coordinate with the Supreme People's Court to build a data system related to cases being handled and to allow credit institutions to search and extract data from the system.

b) Ministry of Security:

- Take strict actions against those who violate the law by disrupting or interrupting the process of seizing and disposing of collateral to recover debts; ensure that the seizure and disposal of collateral to recover debts takes place smoothly and in accordance with the law.

- Direct police at all levels to effectively implement the "Work process to ensure security and order in the process of seizing collateral under Resolution No. 42" to support credit institutions and VAMC in maintaining security and order during the seizure and disposal of collateral for debt recovery under Resolution No. 42/2017/QH14.

c) Ministry of Finance:

Continue to implement the order of priority payment as prescribed in Resolution No. 42/2017/QH14 related to the payment of tax obligations when disposing of collateral of bad debts and relevant laws.

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- Continue to provide guidance and instructions to grassroots authorities (ward and commune level) on the implementation of Resolution No. 42/2017/QH14, and assign responsibilities to support credit institutions and bad debt buyers/sellers in implementing their plans for seizing collateral

- Continue to promote the role of the Steering Committee for the Execution of Civil Judgments and direct departments and agencies in the province to coordinate effectively in the enforcement of civil judgments, especially for complex cases, cases affecting security and political stability, and cases requiring the participation of departments and agencies in the province.

dd) Ministries and governing agencies: Require corporations, companies, and member units to fulfill their debt repayment obligations and guarantee obligations for loans that they guarantee to subsidiaries and member companies.

e) State Bank of Vietnam:

- Continue to perform the tasks of the focal unit implementing Resolution No. 42/2017/QH14 in the banking sector.

- Take the measures mentioned in Appendix 01 attached to the Government's Report No. 174/BC-CP dated May 11, 2022 summarizing the implementation of Resolution No. 42/2017/QH14 on pilot disposal of bad debts of credit institutions and proposing to improve the legal system on disposal of bad debts and collateral.

3. Formulation and improvement of documents

a) The State Bank of Vietnam shall coordinate with concerned ministries and agencies in proposing legislation of regulations on disposal of bad debts and collateral thereof along with reviewing and amending the Law on Credit Institutions.

b) The Ministry of Finance shall develop and formulate regulations on standards for the valuation of credit debts to establish a legal basis for the valuation activities of valuation organizations.

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5. The State Bank of Vietnam shall supervise and urge the implementation of this Resolution, any arising problems should be reported to the Government and the Prime Minister for consideration and direction./.

ON BEHALF OF THE GOVERNMENT
PP. THE PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai