Although the economy has shown signs of improvement, basic difficulties and weaknesses still exist.
The production and business story of a large number of businesses still having difficulties, the real estate market’s slow recovery in a healthy way, the bad debt that banks have difficulty in solving… are examples mentioned. to many.
Regarding bad debt handling, this is a focus that the Government has set as an urgent requirement to implement in 2015, banks themselves also want to quickly handle bad debts to ease financial pressure. …
In fact, there is no shortage of methods to deal with bad debts, however, the problem we are facing is that we are lacking in tools and mechanisms strong enough to support and promote the handling and recovery of bad debts. . So, how to create tools and mechanisms strong enough to support and promote the handling and recovery of bad debts?
Lawyer Tran Duc Hung, DHP . Law Firm
Socializing debt trading
Firstly, selling bad debts is one of the methods of dealing with bad debts. Currently, we have established the National Asset Management and Debt Management Company (VAMC) to buy back bad debts of banks. Selling debt to VAMC is not currently a form of buying or selling bad debts because after selling debts, banks are still responsible for taking other measures to recover this debt. Therefore, relying on VAMC’s capabilities alone does not seem feasible.
In my opinion, in order to promote bad debt settlement, we should socialize debt trading and deal with bad debt by building a mechanism so that banks can sell bad debts not only to VAMC but also to customers. other economic organizations in the form of buy-out and partial-sale.
For example, building a bad debt trading market by allowing the private sector to set up companies specializing in the collection of bad debts from banks to handle themselves or companies specializing in bad debt trading (buying, reselling). Having an additional debt trading channel (besides VAMC) will definitely bring more efficiency and reduce pressure on VAMC, reduce the burden on the state budget and reduce pressure on capital and debt settlement for banks themselves. row.
Secondly, in addition to forming the debt trading market mentioned above, we also need a strong enough mechanism to support and promote banks, VAMCs, and bad debt buying organizations to recover bad debts.
The last step in bad debt handling is bad debt recovery. Debt trading and debt restructuring are just technical measures. Selling debt to VAMC or to any other organization is just a way of transferring creditors. If only debt trading and debt restructuring does not focus on debt recovery measures, the bad debt settlement cannot be fully effective. It’s like “new wine, but the bottle is still old”.
Strengthening the roles and responsibilities of legal proceedings (courts, judgment enforcement, police agencies) is one way to support and promote bad debt recovery.
Currently, the law allows banks to sell their own collateral to collect loans, but because banks have no sanctions, enforcement is not easy. Therefore, it is still common to collect loans through legal proceedings (initiate lawsuits to request loan repayment, sell assets to recover debts).
The problem is that the above procedures are still cumbersome, so debt recovery by this method is not easy. In the immediate future, the Supreme People’s Court, the Supreme People’s Procuracy, the Ministry of Public Security, the Ministry of Justice, and the State Bank should have an inter-ministerial circular to unify the way to deal with debt disputes of banks. Credit institutions in the following direction: Requesting procedure-conducting agencies to speed up the handling and guide the removal of existing difficulties and obstacles; abolish unnecessary procedures to speed up the processing…
In the long term, it is advisable to issue and apply summary proceedings for loan disputes because, by their nature, debt disputes are not disputes with complicated legal content, so it is necessary to apply the following procedures. litigation faster and more compact than other disputes.
Currently, the law stipulates that banks have the right to seize and sell collateral by themselves to recover loans. But in practice, the application of this regulation faces many difficulties because there is no specific sanctions for the case where the owner of the collateral does not voluntarily hand over the property to the bank for handling. Therefore, it is necessary to prescribe sanctions in this case.
Debt settlement before real estate rescue
The real estate market and bad debt have a close relationship. Outstanding loans for real estate business are large, real estate is a popular collateral, accounting for most of the banks. Therefore, so far, we all think that rescuing the real estate market is a good solution to deal with bad debts. But in another relationship, I think that to rescue the real estate market, there must be capital, and now bad debt is the point of capital stagnation.
Therefore, we cannot rescue the real estate market without solving the problem of bad debt. We should not intervene in the real estate market to hope to handle bad debts, but rather let the real estate market “drop in price” to its true value. At that time, the bank will also easily sell collateral, thereby handling bad debts more effectively.
In fact, many banks are impatient to sell collateral at a lower price than the market price to cut losses but also cannot sell below the market price because it will lead to borrower complaints; If the security asset is sold at the market price, it is difficult to sell because the buying and selling procedure is more complicated than buying and selling on the market, so buyers are not interested.
Therefore, it will be wrong to spend money to nurture a real estate market that is being distorted in price, because that will not only make the real estate market not prosper but also make bad debt settlement difficult. should be sluggish.
The Government’s target in 2015 is to reduce bad debt in banks to about 3%. Looking at the reality, banks are still having a headache about bad debt and all admit that bad debt settlement is not easily achieved in a day or two. Therefore, in the short term and long term, we should actively apply more flexible and effective measures and tools to handle and recover bad debts.
Lawyer Tran Duc Hung
Post on Securities Investment newspaper on July 3, 2015
