The National Assembly (NA) has agreed to extend a pilot resolution on bad debt settlement until the end of 2023 instead of this year.
Experts said a law on bad debt settlement should be put in place before two regulations expire in six months.
Banks have put on sale consumer debts with no collateral with very small value. One of the debts has the value of VND483,000, including principal, interest and fine.
A daring decision has helped the financial market and the banking system to stand firmly during Covid-19.
Some organisations have rushed to sell shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) to retrieve bad debts, but it was not easy to find buyers agreeing with the offered price.
State Bank Vietnam (SBV) Governor Le Minh Hung said at a conference on reviewing socio-economic development in the first half of the year that SBV has adjusted the 2020 credit growth rate limits of some banks.
Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.
A spike in the amount of bad loans sitting in banks’ books has triggered Vietnamese authorities to seek new paths to recovery,