NA to consider draft law on restructuring and supporting NPLs

Draft law on non-performing loans to go before next session of National Assembly.

State Bank of Vietnam (SBV) Governor Le Manh Hung has said that the Draft Law on Restructuring and Supporting non-performing loans (NPLs) will be considered at the next National Assembly session.

The National Financial and Monetary Policy Advisory Council, headed by Deputy PM Vuong Dinh Hue, held its first quarterly meeting of the year on March 29. The restructuring of credit institutions (CIs) and dealing with bad debts were identified by members as important tasks.

Reporting on monetary and banking operations in the first quarter of 2017, SBV Deputy Governor Nguyen Thi Hong said that the interest rate was governed by sound liquidity regulation and instructed CIs to reduce costs, improve business efficiency, and be able to reduce interest rates on loans.

The SBV continues to control credit growth in line with credit quality improvements, focusing on production and business sectors, priority areas, and strict control of risky areas, to create conditions for customers to access credit.

Credit growth has been sound since the beginning of the year, with a positive credit structure, and positive credit programs and policies have been actively implemented. Money supply for the economy in the first quarter increased to serve capital requirements a reasonable level and were completely controlled.

Inflation is at stable monthly average, which shows that current monetary policy is heading in the right direction.

Council members concurred with the results of fiscal and monetary policies as well as the coordination of these policies, which contribute to macro-economic stability, economic growth, and inflation control. However, Council members also pointed out that the handling of difficulties and obstacles, vigorously promoting the process of economic restructuring, especially the restructuring of ICs, and dealing with bad debts are among the most important measures to contribute to macro-economic stability, curb inflation, stabilize interest rates and exchange rates, and boost economic growth in the time to come.

At the meeting, Governor Hung added that the SBV has finalized the draft restructuring plan for CIs associated with dealing with bad debts for the 2016-2020 period and has developed a draft law to restructure and support the handling of bad debts. It was proposed that the draft law be submitted to the National Assembly for consideration and approval at its next meeting

Vietnam Economic Times

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