Central bank governor stresses solutions to bad debt settlement
Governor of the State Bank of Vietnam (SBV) Le Minh Hung on November 16 fielded lawmakers’ questions about the banking system’s operations, underlining the need to focus on effectively implementing a resolution on piloting the settlement of bad debt at credit institutions.
Governor of the State Bank of Vietnam Le Minh Hung answers lawmakers' questions on November 16 (Photo: VNA)
Hanoi (VNA) – Governor of the StateBank of Vietnam (SBV) Le Minh Hung on November 16 fielded lawmakers’ questionsabout the banking system’s operations, underlining the need to focus oneffectively implementing a resolution on piloting the settlement of bad debt atcredit institutions.
He said the National Assembly’s Resolution 42/2017/QH14 on piloting thesettlement of bad debt at credit institutions is a very important legalframework for credit institutions to accelerate the handling of non-performingloans.
Bad debt settlement is a problem that has lingered on for many years, he noted,adding that the Government and Prime Minister Nguyen Xuan Phuc ordered the SBVto promptly review bottlenecks in the bad debt settlement.
The central bank has closely followed credit institutions’ implementation ofResolution 42, which took effect on August 15, and reported problems andobstacles to the Government. It selected six banks for the pilot settlement ofbad debt from now to the end of 2017 so as to serve as examples for expandingbad debt settlement to the remaining credit institutions, he noted.
He added since the beginning of 2017, under theGovernment’s direction, the SBV has taken drastic actions to steer the monetarypolicy while credit institutions have made efforts to reduce interest rates,channel the capital flow to production and business activities, and press onwith restructuring the banking system and handling bad debt.
That has helped fuel GDP growth in the third quarter, improve Vietnam’sbusiness climate and increase the prospect and prestige of the country’sbanking system in the world, Hung said.
The central bank governor was among officials set to answer lawmakers’questions regarding issues within their remits. The question and answersessions are part of the ongoing fourth session of the 14th NationalAssembly.-VNA
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Governor of the State Bank of Vietnam Le Minh Hung answers lawmakers' questions on November 16 (Photo: VNA) 
