Directive No. 02/2001/CT-NHNN on Rectifying Loan Management Practices for Borrowers at Banks

DIRECTIVE

OF THE GOVERNOR OF THE STATE BANK NO. 02/2001/CT-NHNN
DATE APRIL 2, 2001 ON REGULATING THE WORK OF DEBT COLLECTION FROM LOAN CUSTOMERS AT BANKS

In recent time, implementing the directives of the Prime Minister, the State Bank has closely cooperated with relevant Ministries and sectors to handle many outstanding debts in the economy related to bank loans through various measures such as debt extension, debt freezing, and debt cancellation, contributing positively to improving the financial situation of enterprises and gradually promoting business production activities.

Generally, the work of debt collection has been carried out promptly, in accordance with procedures, ensuring legality, and strictly following the directives of the Prime Minister. However, in recent times, the work of debt collection has often been passive due to the different forms of debt, leading to many difficulties in coordination between Ministries, sectors, and localities. Recently, some commercial banks have not fully considered outstanding debts to find proactive solutions, resulting in requests for the State Bank to report to the Prime Minister for debt freezing and cancellation for enterprises, especially state-owned enterprises, which limits the positive aspects of the policy and directives of the Government.

To enhance autonomy in business operations and responsibility for business results, the work of debt collection also needs to be regulated, carried out according to established procedures and principles, ensuring safe and effective operations of commercial banks. The State Bank requires the Chairmen of the Board of Directors and General Managers (Directors) of state-owned commercial banks, joint-stock commercial banks, and people's credit funds (hereinafter referred to as credit organizations) to implement the following contents:

1. Credit organizations shall independently decide on lending and bear responsibility for loan recovery according to the current credit regulations. In cases where customers face risks requiring debt resolution, credit organizations must proactively examine and decide on debt resolution in accordance with the provisions of Decision No. 488/2000/QĐ-NHNN dated November 27, 2000 of the Governor of the State Bank; they shall not request the State Bank to report to the Prime Minister for debt freezing and cancellation before examining and handling within the scope of their financial responsibilities.

2. In cases where loans (including trade credit and credit under programs, projects, and designated targets by the Prime Minister) face risks due to force majeure with wide-ranging impact and significant damage to bank loans, credit organizations shall compile reports to the State Bank for submission to the Prime Minister to decide on the handling direction. Credit organizations shall only proceed with procedures for debt freezing and cancellation when they receive specific directives from the Prime Minister and guidance from the State Bank.

3. For cases that exceed their authority, if credit organizations consider it necessary to freeze or cancel debts for customers, they may report to the State Bank for submission to the Prime Minister for consideration and decision based on self-balancing of financial resources to offset when implementing debt freezing or cancellation.

4. For debts resolved through debt freezing and cancellation according to the Prime Minister's directives, the financial resources for offsetting debt freezing and cancellation shall be implemented according to the Prime Minister's directives.

5. The Chairmen of the Board of Directors, General Managers (Directors) of credit organizations, Branch Directors of the State Bank in provinces and cities, and Departments and Bureaus of the State Bank according to their assigned functions and tasks shall be responsible for strictly implementing this Directive.

6. This Directive shall take effect fifteen days after its date.