Governor of the State Bank: The next 5 years will generate more bad debts about 350,000 billion

According to the banking sector, with an average growth rate of 16% per annum for the economy, NPLs in the next five years are projected at VND350 trillion. If you only deal with old bad debt, bad debt will continue to encounter mechanism problems.

Explanation for the second draft of the NPL with National Assembly deputies, SBV governor Le Minh Hung said that the target of the draft resolution on dealing with bad debt for the National Assembly to consider approval The treatment of bad debts over the past time did not achieve the desired results due to many reasons, including difficulties in legal, many legal issues not specified, there are legal issues have been Not practical and not feasible. On the basis of the review and assessment of difficulties, obstacles, the Government has agreed to submit to the National Assembly to issue resolutions with the main contents to remove problems in the process of dealing with bad debts .

The promulgation of this resolution, according to the Governor, is not to amend other laws but to be applied as a specialized document to overcome the inadequacy of the current law on dealing with bad debt .

Regarding the comments of the deputies do not use the state budget, according to Mr. Hung when drafting the Government very seriously. However, in the process of dealing with bad debt with assets, credit institutions have to set up risk provisions. When it comes to using income, profits to handle should definitely affect corporate income tax.

In addition, the increased deduction will cause state-owned banks to reduce their dividend payments to the state budget. "That proves that the state budget has indirectly supported certain processes for dealing with bad debts ," the Governor frankly explained.

Regarding the scope of dealing with bad debts , according to the Governor, the application of old debts and debts arising from the application of resolutions is very necessary, since bad debts are always hidden and arise, in parallel with credit activities. right. In terms apply synchronization solutions limited bad debt , the annual bad debt still further 1.3-1.5% rise in total loans due to objective reasons and subjective. With a target of 16% annual credit growth, it is expected that the next five years will generate more bad debts of about VND350 trillion. In order to maintain the target of bad debt below 3% in the next 5 years, it must handle nearly 130 trillion dong (600 trillion in total).

Moreover, according to the governor, if bad debts are frozen until December 31, will be dealt with according to the resolution that the next debts will be handled under the current law will be very inadequate, so the Governor expects the deputies to Congress consider.

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