The rate of bad debts on the balance sheet is maintained at less than 2%: Governor | Business

During the tenth session of the Standing Committee of the National Assembly

State Bank Governor Nguyen Thi Hong made the statement during the tenth session of the National Assembly Standing Committee this morning in the National Assembly Chamber. Speaking at the opening session, National Assembly Speaker Vuong Dinh Hue reviewed the main content of the program. meeting program.

The Standing Committee of the National Assembly commented on the government’s report summarizing the implementation of resolution no. , the state budget settlement report in 2020, including the annual report on the results of debt settlement in accordance with resolution No. 94/2019/QH14, state financial report 2020.

The government proposes to extend the period of application of all provisions of Resolution 42 by two years until August 15, 2024, without proposing to modify or supplement the provisions of the resolution.

Thus, the Standing Committee of the National Assembly issued opinions on five bills, including the law on petroleum (amended), the law on the prevention and control of domestic violence (amended), the law amending and supplementing a number of articles of the Radio Frequency Law, Inspection Law (Amended), Medical Examination and Treatment Law (Amended) and Law and Ordinance Development Program expected in 2023, program drafting of laws and ordinances adjusted in 2022.

The National Assembly Standing Committee heard State Bank Governor Nguyen Thi Hong present the government report summarizing the implementation of National Assembly Resolution No. 42/2017/QH14 of June 21, 2017 on the management of doubtful debts of credit institutions.

According to the report, in recent years, the bad debt situation and the treatment of bad debts of credit institutions and foreign bank branches have always been the subject of close attention and guidance from the Party, of the National Assembly, the government, social agencies and organizations and voters. at national scale.

Especially with the institutionalization by the National Assembly of the settlement of doubtful debts through the formulation and publication of resolution no. and limitations of bad debt processing have been overcome, creating a unified and synchronous legal framework for bad debt processing, removing difficulties and obstacles, helping credit institutions to effectively manage bad debts, ensuring that credit institutions continue to promote their role as the main channel of capital to meet capital needs. for the production and business activities of the economy, particularly in the context of the Covid-19 epidemic.

Thus, the doubtful debts of the system of credit establishments have been processed and controlled and the rate of doubtful debts on the balance sheet is maintained at less than 2%. In addition, the total of unresolved bad debts determined in accordance with Resolution No. 42 of the entire system of credit institutions as of December 31, 2021, decreased by 17.2% compared to August 15, 2017, the date on which Decree No. 42 entered into force.

The total number of bad debts processed according to Resolution No. 42 from August 15, 2017 to December 31, 2021 is about VND 2,150 billion per month, which is higher than the average result of bad debt settlement at the time. preceding Decree No. Decision 42 takes effect.

By Anh Phuong – Translated by Dan Thuy

Sallie R. Loera