Bad debt treatment is a big problem of banks. To deal with bad debts, banking in Khanh Hoa Province will coordinate closely with the judgment execution agency...
Bad debt treatment is a big problem of banks. To deal with bad debts, banking in Khanh Hoa Province will coordinate closely with the judgment execution agency.
Recently, the State Bank – Khanh Hoa Branch and the provincial Civil Judgment Execution Agency organized a meeting to discuss about the coordination between the two sides to solve difficulties in treat bad debts.
The provincial Civil Judgment Execution Agency reported about VND10,000 billion in judicial sale each year, including more than VND500 billion related to banking credit. However, according to the State Bank – Khanh Hoa Branch, credit institutions in the province still remain 264 cases with over VND500 billion judged but not executed yet.
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The number of judgments shifted to the judgment execution agency rises more and more, giving more pressure and difficulties to this organization. Especially, judgment execution to immovables meets a lot of obstacles.
“The biggest obstacle now is the real estate market freezing and having no customers. In some cases, we have lowered properties’ price for 20 times but they are still unsold”, said Nguyen Huu Anh, Deputy Director of the provincial Civil Judgment Execution Agency.
Beside this, price appraisal procedure is also one of reasons prolonging debt withdrawal. Moreover, some debtors don’t co-operate with the judgment execution agency, oppose executors and hide pledge assets.
To forward executing civil judgments of pledged assets to revoke bad debts for commercial banks, role of the State Bank is very necessary. “The State Bank plays an intermediary role between commercial banks and the judgment execution agency, making the cooperation more effective”, said Doan Vinh Tuong, Director of the State Bank- Khanh Hoa Branch.
The two sides of banks and the judgment execution agency have committed to intensify coordination in verifying, distraining and assessing properties, exchange each other and solve problems in time.
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