Will not use budget money to cancel bank debt

Limiting the use of state capital to handle bad debt, not expected to use the budget to clear debt... is the Governor's answer to the National Assembly delegates.

Sending questions from the fourth session of the National Assembly (November 2012), recently, delegate Do Manh Hung, Vice Chairman of the Committee on Social Affairs, received a written response about the debt trading company.

In the question and answer document, delegate Hung asked the Prime Minister to inform about the principles of debt trading and settlement of debt trading companies, the financial resources for the company's operations, and whether the Government plans to use the state budget to settle the debt. Mr. Hung also wanted to know about solutions to combat negativity and corruption in this activity.

According to the explanation of delegate Hung, the reason he sent the question to the head of the Government was because during the questioning session of the Governor of the State Bank at the fourth session of the National Assembly, he asked about the debt trading company and was told that a project had been developed and reported to the Prime Minister.

Authorized by the Prime Minister, Governor Binh said that the debt trading company, or more correctly, the asset management company, which is expected to be established, is one of the solutions to help handle bad debts in the banking system and businesses. Currently, the establishment of this company is being studied and proposed by government agencies according to the lowest cost model and limiting the use of state capital for handling bad debts.

“It is expected that the Government will not use budget money to cancel debts for banks,” the Governor wrote.

According to the Governor, to limit negativity and group interests, the company's operations must ensure the principle of transparency, especially in debt and asset valuation, debt collection, debt settlement costs, debt collection distribution and asset settlement, must be independently audited annually, and subject to inspection and supervision by competent state agencies.

Negative behavior and violations of the law discovered in debt settlement will be strictly handled according to the law, Mr. Binh affirmed.

“Because the new project is in the process of research and proposal, after the project is approved by the Government, the Prime Minister and the State Bank will report more specifically to the National Assembly delegates on this issue,” the Governor promised.

However, delegate Hung said he was not satisfied with the answer because it was still "general".

Being the focus of many discussion and questioning sessions at the National Assembly forum in 2012, resolving bad debt is not only a question from a delegate to the head of the Government.

In December 2012, answering questions from delegate Tran Thi Quoc Khanh, Standing Member of the National Assembly's Committee on Science, Technology and Environment, the Prime Minister said that the study to establish an asset management company aims to have another tool to handle bad debt in the economy.

According to the draft project, the company's operations are based on the principle of using revenue to offset expenditure. The operating capital is much lower than the amount of bad debt, and the State budget only participates in part. The main source of capital to handle bad debt is from issuing bonds and other debt instruments. The company's debt purchase and sale activities must be public and transparent. The value of assets and loans purchased and sold are valued by independent professional organizations./.

According to (Vneconomy) - LT