HÀ NỘI — The settlement of bad debts will face many difficulties this year as there are no legal regulations related to repossessing collateral assets, industry insiders said. According to Nguyễn Quốc Hùng, General Secretary of the Vietnam Banking Association, it will be tough for credit institutions to handle and recover bad debts, as Resolution 42/2017/NQ-QH14, which piloted handling of bad debt of credit institutions and allowed the institutions to repossess collateral assets on bad debts, expired at the end of last year. Under the amended Law on Credit Institutions recently passed by the National Assembly, credit institutions do not have the right to repossess collateral. Value and origin of collateral assets must be appraised, verified, evaluated and closely monitored. In the long term, experts suggest that a new and more consistent legal framework is needed to resolve bad debts.

Source: Viet Nam News February 07, 2024 06:39 UTC