Resolution 148/NQ-CP 2023 implement Resolution 42/2017/QH14 on pilot handling of non-performing loans of credit institutions

RESOLUTION

On further implementation of the National Assembly’s Resolution No. 42/2017/QH14 of June 21, 2017, on pilot handling of non-performing loans of credit institutions

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THE GOVERNMENT

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the National Assembly’s Resolution No. 42/2017/QH14 of June 21, 2017, on pilot handling of non-performing loans of credit institutions (below referred to as Resolution No. 42/2017/QH14);

Pursuant to the National Assembly’s Resolution No. 63/2022/QH15 of June 16, 2022, on the 3^rd session of the 15^th National Assembly; 

Pursuant to the Government’s Decree No. 39/2022/ND-CP of June 18, 2022, promulgating the Working Regulation of the Government;

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

Based on votes of the cabinet members,

RESOLVES:

On June 16, 2022, the 15^th National Assembly adopted Resolution No. 63/2022/QH15 on the 3^rd session of the 15^th National Assembly (below referred to as Resolution No. 63/2022/QH15). Accordingly, the National Assembly agreed to extend the period of application of the whole Resolution No. 42/2017/QH14 from August 15, 2022, through December 31, 2023. In Resolution 63/2022/QH15, the National Assembly requests the Government to adopt solutions to remove the difficulties and obstacles mentioned in Report No. 174/BC-CP of May 11, 2022, and strengthen coordination among agencies and units based on their responsibilities for organization of the implementation of the Resolution, ensuring its effectiveness and efficiency.

Based on the directing opinions of the National Assembly, in addition to further implementation of the Prime Minister’s Directive No. 32/CT-TTg of July 19, 2017, on implementation of the National Assembly’s Resolution No. 42/2017/QH14 on pilot handling of non-performing loans of credit institutions (below referred to as Directive No. 32/CT-TTg), in order to ensure the effective implementation of Resolution No. 42/2017/QH14 during its extended period of application, the Government requests ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees to direct and perform the following tasks:

1.  Regarding public communication and dissemination

a/ The State Bank of Vietnam shall thoroughly grasp the contents related to extension of the period of application of Resolution No. 42/2017/QH14 for credit institutions, and the Vietnam Asset Management Company (VAMC) and related units of the State Bank of Vietnam.

b/ Ministries, ministerial-level agencies and provincial-level People's Committees shall thoroughly grasp the contents related to extension of the period of application of Resolution No. 42/2017/QH14 for agencies, units, cadres and civil servants performing tasks related to handling of non-performing loans and collateral of non-performing loans of credit institutions and the VAMC.

c/ The Ministry of Information and Communications shall organize public communication and dissemination of Resolution No. 42/2017/QH14 and the extension of the period of application of Resolution No. 42/2017/QH14, specifically as follows:

- Directing central and local news and press agencies, grassroots information systems, and provincial-level Departments of Information and Communications to strengthen information and communication work and raise awareness about handling of non-performing loans for the people of all strata so that clients and stakeholders involved in handling of non-performing loans can consciously and proactively implement the Resolution.

- Directing and guiding media agencies to regularly organize seminars and forums to exchange information and experiences about handling of non-performing loans and collateral among credit institutions with a view to improving the capacity of risk management, realization of collateral, and recovery of loans.

The dissemination of and public communication about the contents mentioned at Points a, b and c above shall be completed before September 30, 2023.

2. Regarding measures to remove difficulties and obstacles during the implementation of Resolution No. 42/2017/QH14

a/ The Ministry of Justice shall:

- Direct the General Department of Civil Judgment Execution to review outstanding judgment enforcement cases related to realization of collateral for loan recovery, focusing on and giving priority to completely handling such cases to ensure the maximum value of recoverable collateral; and, at the same time, follow the order of priority for payment of court fees for judgment enforcement cases in accordance with Resolution No. 42/2017/QH14 and relevant regulations.

- Coordinate with the Supreme People's Court in establishing a system of data related to cases currently accepted for settlement and allow credit institutions to look up and extract data from such system.

b/ The Ministry of Public Security shall:

- Resolutely handle individuals and organizations that commit illegal acts affecting security and order during the process of seizing and handling collateral to recover loans; and ensure favorable conditions for the seizure and handling of collateral for loan recovery in accordance with law.

- Direct the public security agencies at all levels to effectively implement the "Working process to ensure security and order in the process of seizing collateral under Resolution No. 42/2017/QH14" so as to support in maintenance of security and order for credit institutions and the VAMC in the process of seizing and handling collateral to recover loans under Resolution No. 42/2017/QH14.

c/ The Ministry of Finance shall further apply the order of priority for payment in accordance with Resolution No. 42/2017/QH14 with regard to the fulfillment of tax obligations upon handling of collateral for non-performing loans and implement relevant regulations.

d/ Provincial-level People's Committees shall:

- Issue guiding and directing documents for local administrations (of ward and commune levels) to implement Resolution No. 42/2017/QH14 and assign their responsibilities for supporting credit institutions and organizations engaged in trading and handling of non-performing loans to implementing plans to seize collateral;

- Further promote the role of the Steering Committee for Civil Judgment Execution and direct local departments and sectors to effectively coordinate in civil judgment enforcement, especially for complex cases affecting security and political situation and cases requiring the involvement of local departments and sectors.

dd/ Ministries and managing agencies shall direct groups, companies and their member units to fulfill repayment obligations/guarantee obligations for loans they undertake to guarantee for their subsidiaries and member companies.

e/ The State Bank of Vietnam shall:

- Further perform tasks of the focal-point unit in organizing the implementation of Resolution No. 42/2017/QH14 in the banking sector.

- Implement the solutions provided in Appendix No. 01 to the Government’s Report No. 174/BC-CP of May 11, 2022, reviewing the implementation of Resolution No. 42/2017/QH14, and propose improvement of the legal system on handling of non-performing loans and collateral.

3. Regarding formulation and improvement of documents

a/ The State Bank of Vietnam shall act as the focal point in coordinating with related ministries and sectors in proposing inclusion of provisions on handling of non-performing loans and collateral of non-performing loans into laws together with the review and revision of the Law on Credit Institutions.

b/ The Ministry of Finance shall formulate regulations on criteria for price appraisal of loans so as to create a legal foundation for price appraisal activities of price-appraising organizations.

4. The Government requests ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees to strictly organize the implementation of Resolution No. 63/2022/QH15 and Resolution No. 42/2017/QH14, Directive No. 32/CT-TTg, and the tasks assigned in this Resolution and relevant guiding documents.

5. The State Bank of Vietnam shall monitor and urge the implementation of this Resolution; and promptly report arising problems to the Government or Prime Minister for consideration and direction.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI