Hundreds of credit and banking cases have not been enforced yet.

(Baonghean) - Opposing the execution of judgments, obstructing the enforcement officers, auctioning many times without buyers, not having assets to execute judgments... are the difficulties and obstacles in the execution of civil judgments in cases related to credit institutions and banks.

184 cases transferred to next period

In the 6 months (from October 1, 2016 to March 31, 2017), in the province, there were 202 cases to be executed for credit institutions and banks, corresponding to a total amount of 481.6 billion VND, an increase of 67 cases and 193 billion VND compared to the same period last year. Of which, 170 cases were eligible for execution with an amount of nearly 402.3 billion VND; 32 cases were not eligible for execution with an amount of approximately 79.4 billion VND.

Up to now, the civil judgment enforcement agency (CEA) has completed 18 cases with the amount of enforcement being nearly 61.5 billion VND. Thus, there are 184 cases that must be transferred to the next period, with the amount of more than 420.1 billion VND. Along with that, the CEA has carried out the seizure, valuation and is currently auctioning assets for 34 cases, with the amount of 133.6 billion VND.

Transaction at a bank branch in the province. Photo: Quynh Lan

According to the enforcement of judgments in the field of financial and banking organizations, most of the cases are related to land use rights and housing, so the seizure and handling of the residence of the family of the judgment debtor is very difficult, even facing evasion and fierce resistance from the parties. In many cases, the judgment debtor intentionally complains, denounces or complains beyond the level of authority; some cases have been through many levels, many times resolved in accordance with the law, but people continue to complain with the aim of prolonging the enforcement of the judgment, causing obstacles to the organization of the enforcement of the judgment.

A typical case is that Hai An Company Limited had to pay the Industrial and Commercial Bank, Nghe An branch, 10.1 billion VND. The THADS agency invited the unit but it did not come to resolve the issue. When it came to enforcement, they threatened the Execution Officer.

In addition, there are other problems such as the remaining value of collateral assets is low due to inflation and the initial loan appraisal price of the bank is higher than the actual value of the assets, causing difficulties for THADS. For example, at the Vinh City THADS Department, there are 9 files with a very large amount of money to be enforced, more than 33.1 billion VND, but the value of the collateral assets at the present time is much lower. The enforcement agency has seized and handled all the collateral assets and other assets cannot recover all the debt for the bank (such as at Tan Thanh An Electrical Construction Joint Stock Company, Thai Loi Company Limited, Viet Thai Joint Stock Company, Hoang Long Food Processing Joint Stock Company...).

17 auctions without buyers

Mr. Pham Quoc Nam - Deputy Director of the Provincial Department of Enforcement of Civil Judgments said that although cases related to credit institutions and banks account for a small proportion (2% of the total number of cases handled), the amount of money is very large (60.7% of the total amount of money handled). In particular, mainly aimed at mortgaged and guaranteed assets, so the enforcement process encounters many difficulties and obstacles.

The main problem at present is that the handling of mortgages must follow complicated procedures, especially for land assets. Furthermore, the people who must enforce judgments in cases related to bank credit are usually unable to pay and are at risk of having their assets seized, so they deliberately oppose the enforcement of judgments in many ways such as changing the current status of the assets, not accepting the enforcement decision, obstructing the verification, attachment, valuation, and auction of assets to enforce the judgment, etc.

A session of enforcement of judgment in Hoang Mai town. Photo: PV

In addition, the fear of buying assets auctioned for enforcement of judgments leads to a very low probability of success in the first auction, and most of the time, auctions have to be held many times, but in many cases there are still no buyers. Although the real estate market has shown signs of improvement, in reality, the prolonged freeze has directly affected the conditions for enforcement of judgments of judgment debtors and the liquidity of the market, especially the real estate market, so the sale of assets to ensure enforcement of judgments is still limited.

Currently, there are 34 cases/133.6 billion VND of seized land being auctioned. Among them, there are cases that have been sold many times without any buyers, such as the case of Nguyen Phan Ha, Nguyen Thi Thao (Vinh City) which has been sold 17 times; the case of Ho Trong Luong, Tran Thi The (Dien Chau) which has been sold 9 times, and the case of Le Trong Mao (Cua Lo Town) which has been sold 10 times.

In addition, some banks do not have collateral when lending or have collateral but the bank has handled it itself, now requesting enforcement but the person subject to enforcement does not have any other assets to ensure enforcement. In some cases, the person subject to enforcement is old, has left the locality with an unknown address, and has only real estate as the only asset, but the amount of money required to enforce the judgment is very small, so the land cannot be enforced.

At the Vinh City Execution Department, there are 3 cases, corresponding to the amount of 22.5 billion VND (Vietnam Joint Stock Commercial Bank for Industry and Trade lent nearly 1.7 billion VND to Thai Loi Company Limited, address 320, Nguyen Van Cu Street (Vinh City); Vietnam Joint Stock Commercial Bank for Industry and Trade lent more than 2.6 billion VND to Viet Thai Joint Stock Company, address 2B, Le Loi Street (Vinh City); Nghe An Branch of the Bank for Industry and Trade lent 18.2 billion VND to Hoang Long Food Processing Joint Stock Company, address 58, Nguyen Thi Minh Khai Street (Vinh City). Currently, these companies are no longer operating, and do not have any assets to secure execution of the judgment.

To overcome the above difficulties, the Provincial THADS Department has signed a coordination regulation with the State Bank of Vietnam, Nghe An branch, to contribute to improving the effectiveness of THADS work on cases related to the banking sector in the area. Accordingly, the two sides will coordinate to exchange and provide information in the handling of bad debts; provide professional guidance and resolve complaints and denunciations about THADS related to credit and banking activities; and at the same time, organize inspections of THADS related to credit and banking activities.

In addition, the provincial THADS Department also established a working group specializing in credit and banking cases to urge, grasp the situation and resolutely handle pending and complicated cases. Along with that, strengthen the inspection, direction and strictly handle the responsibility for the delay in the enforcement of civil judgments in general and matters related to credit and banking cases in particular, resolutely handle pending cases.

Quynh Lan