State Bank of Vietnam
Governor Le Minh Hung told the National Assembly on June 7 that there's no
loophole in the draft resolution on bad debt for individuals and groups to
State Bank of Vietnam Governor Le Minh Hung speaks at the NA meeting
on June 7.
According to Hung,
the unstable international situation had badly affected Vietnam while the
local economy was having many difficulties with rising public debts. In
addition, the real estate in Vietnam has experienced a slump.
Hung said Vietnamese firms were too dependent on bank loans and that was why
they were so easily affected by various changes in Vietnam and in the world.
"They both, directly and indirectly, causes bad debts," he said.
Data from the General Statistics Office show that from 2011 to 2015, over
63,000 firms went out of business annually. Moreover, the unstable
macro-policies also affected the ability to repay debts. On the other hand,
many firms were shirking responsibility to pay bank loans.
Hung also admitted that lax procedures, weak risk management capacity, and
even unethical bank employees at some banks allow loopholes and high risks of
bad debts. The inspection and monitoring from the State Bank of Vietnam
haven't been up to the current development of the banking sector. Some inspectors
also violated the regulations.
"Some bank employees abused their positions to violate the regulations.
They are and have been dealt with," Hung said.
Hung assured that the new draft resolution on dealing with bad debts had been
discussed carefully and there were no ways for people to exploit for personal
gain. Violators would be strictly punished.
The State Bank of Vietnam has forwarded evidence for investigation.
Statistics from the Ministry of Public Security from 2011 to 2016 show that
95 cases and 200 bank employees were discovered and prosecuted. Many of them
are former bank chairmen, directors or members of the director board and have
been given 20 years of imprisonment, life sentence or the death penalty.
During the restructuring process, about 122 employees in 65 cases at Agribank