On August 26, 2022, the Governor of the State Bank of Vietnam (SBV) issued Document No. 5962/NHNN-TTGSNH requesting Vietnam Asset Management Company (VAMC), the credit institutions and the foreign bank branches to continue and accelerate the implementation of the handling of non-performing loans (NPLs) in line with Resolution No. 42/2017/QH14.
Accordingly, in order to continue the effective implementation of Resolution 42 during the extension period of the effectiveness of all measures as mentioned in Resolution 42, the SBV has requested the VAMC, the credit institutions and the foreign bank branches to implement the following substances:
Continue and accelerate the handling of NPLs and the NPL-related collaterals as required in Resolution 42; continue to implement the tasks on resolving NPLs in accordance with Resolution 42 as assigned in Directive No. 06/CT-NHNN dated July 20, 2017, and other relevant instructions of the SBV during the extension period of Resolution 42.
Continue to proactively coordinate with the local authorities and the relevant Ministries and agencies to effectively implement the policies as stated in Resolution 42, especially those policies on the collection of collaterals (Article 7), the application of simplified procedures in relation to the collateral-related claims at the Court (Article 8); the priority sequences for payment when it comes to the liquidation of collaterals (Articles 12 and 15); the procedures related to the transfer of collaterals, the registration of changes in the land use right, the right to ownership of assets attached to a land, or assets attached to a land formed in the future (Articles 9 and 15).
Continue to enhance the communication to raise the awareness of NPL handling in line with Resolution 42 in order to help customers, especially customers with NPLs at the credit institutions, understand the rights of the credit institutions to the handling of NPLs, and to the collection of the collaterals, as well as the obligations of paying back the debts by borrowers.
In addition, the SBV also requested the VAMC, the credit institutions and the foreign bank branches to enhance their coordination in NPL trading and handling with regard to debts purchased in special bonds and in line with the market prices in order to promote the effectiveness in the handling of NPLs and the related collaterals as required in Resolution 42; strictly comply with the reporting requirements regarding NPLs, results of the handling of NPLs and the related collaterals as required in Resolution 42; promptly report to the SBV and the relevant entities on any difficulties and obstacles, as well as recommend possible measures for the handling of NPLs as required in Resolution 42 during the extension period of the Resolution.
On the same day, the SBV Governor also issued Document No. 5961/NHNN-TTGSNH requesting all SBV municipal and provincial branches to implement several tasks with a view to continuing the effective implementation of Resolution 42 during its extension period.
Le Hang