Law on bad debt settlement necessary: experts
The Government must create a law on bad debts settlement to tackle difficulties during the process, experts said at a recent conference held by the State Bank of Việt Nam. Nguyễn Quốc Hùng, chairman of the Việt Nam Asset Management Company, said on October 26 the company had bought non-performing loans worth a total of US$11.7 million from 42 credit institutions since 2013. However, it recovered nearly VNĐ38 trillion, equivalent to 15 per cent of the bad debts. Hùng attributed the modest result to limited human resources and the huge amount of bad debts which are guaranteed by various types of assets, saying that dealing with collaterals was not as effective as expected. He said legal regulations of the debt trading market were not sufficient enough.
