The Government Inspectorate (GI) will conduct 25 crucial inspections this year, including scrutiny of the central bank’s implementation of a restructuring project in the past five years.

The State Bank of Vietnam (Photo: sbv.gov.vn)

According to Plan No.478/KH-TTCP issued last week by Chief Government Inspector Le Minh Khai, GI in the second quarter will inspect the responsibility of State Bank of Vietnam (SBV) in the implementation of the project on restructuring credit institutions (CIs) in combination with settling non-performing loans (NPLs) at CIs during 2013-17 period.

SBV was entrusted to formulate the project, which aims to restructure CIs and settle NPLs on the principles of ensuring the interests of depositors and maintaining the stability and safety of the banking system as well as reducing the number of poorly performing CIs.

Overall solutions of the restructuring project include completing the legal framework, perfecting policies and mechanisms related to monetary and banks’ operations, improving the financial and business administration capacity of credit institutions and bettering inspections and supervisions over banks’ operations.

The project stresses the need to improve SBV’s capacity to issue early warning of systematic risks and to prevent the risk of law violations of credit institutions and foreign banks’ branches.

For bad debt settlement measures, the project requires SBV to intensify inspections and supervisions of credit institutions’ observance of rules on credit, safe operation and debt classification.

Besides SBV, the ministries of Industry and Trade, Science and Technology, Labour, Invalids and Social Affairs, along with Home Affairs, will also be inspected in the second quarter of this year.

According to the plan, GI will inspect the implementation of restructuring State-owned enterprises at the Ministry of Industry and Trade and their management and use of land.

The inspections will also include the observance of the law related to capital and assets, divestment and restructuring at the Vietnam Tobacco Corporation.

At the Ministry of Science and Technology, GI will focus on inspecting funds for investment projects, besides observing the law on measurement, quality and standards.

GI will also carry out inspections related to the management and use of public land, construction investment and natural resources exploitation in seven provinces of Bac Giang, Phu Tho, Quang Tri, Binh Dinh, Dak Nong, Kien Giang and Binh Phuoc. - VNA