Deputy Head of the Economic Committee, Deputy Nguyen Duc Kien expected the resolution to comply with market principles and pursue criminal procedures against individuals and entities’ wrongdoings for profiteering. He said the resolution should rule out state budget use to settle bad debt.
“The resolution suggests a time frame of effectiveness from this July 2017 to July 2022. It does not differentiate ownership structure of credit institutions and applies for all credit institutions operating in Vietnam in line with WTO and free trade agreements that Vietnam has committed.
The resolution deals with bad debt before December 31, 2016. All nonperforming loans accumulated after January 1, 2017 shall be dealt with by the Law on Credit Organizations. The resolution has an important provision to settle secured assets," he said.
Deputy Kien said he hopes that the resolution if approved would help settle bad debt worth VND 60 trillion. Lending interests could be lowered to 0.75% to facilitate absolute settlement by next quarter.