Laws on Credit Institutions and Planning to be revised
The Government has assigned the State Bank of Vietnam (SBV) to finalize a draft resolution on the settlement of non-performing loans (NPLs) and a draft law amending and supplementing a number of articles of the Law on Credit Institutions and relevant laws, for submission to the XIVth National Assembly at its third session scheduled to start on May 22.
This was part of a resolution of the Government’s recently held meeting on law making.
Prime Minister Nguyen Xuan Phuc addresses the cabinet meeting__Photo: VNA
The cabinet members agreed that the resolution on settlement of NPLs should focus on settling NPLs and security property and formulating mechanisms to permit the Debt and Asset Trading Corporation (DATC) and other enterprises currently engaged in debt trading to equally take part in the settlement of NPLs.
They emphasized the necessity to clearly provide the powers of the Government, Prime Minister and SBV for restructuring weak credit institutions placed under special control.
Accordingly, the Government will decide on plans on bankruptcy and compulsory assignment of credit institutions placed under special control. The Prime Minister will decide on restructuring policies and approve plans on restoration and institutional handling of commercial and cooperative banks and financial companies placed under special control. The SBV will decide on restructuring policies and approve plans on restoration and institutional handling of people’s credit funds and microfinance institutions.
Regarding compulsory assignment, the State will no longer apply the measure of acquisition of specially controlled credit institutions at zero Vietnam dong. In case such credit institutions fail to recover after the recovery plans are implemented, they will be assigned to new investors or credit institutions with strong financial capacity.
Credit institutions that can neither be assigned nor go bankrupt will be dissolved or forced to terminate their operation.
Regarding the draft Law on Planning, the Government agreed with the plan on submission to the National Assembly for promulgation of the Planning Law and an appendix providing the list of relevant laws whose provisions on planning need to be revised.
The Minister of Planning and Investment will have to report to the NA Standing Committee the proposal to draft a law to amend and supplement the above-said laws for promulgation and addition to the 2017 and 2018 law- and ordinance-making programs.
According to the Ministry of Planning and Investment, 32 of total 44 laws relevant to the Planning Law need to be revised. Of these 32 laws, the Law on Water Resources, Land Law, Construction Law and Law on Urban Planning will have most provisions revised.
Source: Vietnam Law & Legal Forum (http://vietnamlawmagazine.vn/laws-on-credit-institutions-and-planning-to-be-revised-5821.html)