Improving the Enforcement Policy for Bank Credit Judgments

To share information and address difficulties and obstacles in the execution of bank credit judgments, as well as to gather feedback from credit institutions, the Vietnam Bankers Association, with the support of the Legal Club, TPBank (Tien Phong Bank), and the General Department of Civil Judgment Enforcement - Ministry of Justice, organized a seminar titled "Improving the Mechanism and Policy for Civil Judgment Enforcement and Resolving Practical Issues in Bank Credit Judgment Enforcement."

Đại diện TPBank tại tọa đàm.

Seminar Aims to Share Information and Address Difficulties in the Enforcement of Bank Credit Judgments

The seminar aimed to share information and discuss the difficulties and obstacles in the enforcement of bank credit judgments, as well as to gather feedback from credit institutions.

Speaking at the seminar, Dr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Bankers Association, stated that the activities of civil judgment enforcement agencies play a crucial role in debt recovery for credit institutions. Although there has been positive progress in the coordination between civil judgment enforcement agencies and credit institutions, the enforcement of bank credit judgments still faces many difficulties and obstacles, which limits the effectiveness of judgment enforcement and debt recovery. Many factors contribute to these difficulties, but the main issue is the lack of coherence, consistency, and clarity in the legal regulations governing judgment enforcement and related laws.

"Based on practical experience, the General Department of Civil Judgment Enforcement - Ministry of Justice has proposed to the government to amend and supplement Decree 62/2015/ND-CP on detailed regulations and guidance on several provisions of the Civil Judgment Enforcement Law. This aims to gradually resolve difficulties in enforcing judgments in general, and credit judgments in particular, while also creating a solid foundation for civil judgment enforcement," Dr. Nguyen Quoc Hung explained.

During the seminar, Nguyen Thanh Long, Chairman of the Legal Club, also mentioned that despite the active and vigorous measures taken by the General Department of Civil Judgment Enforcement and relevant agencies to promote civil judgment enforcement, help banks recover overdue debts, and facilitate credit flow, many cases of judgment enforcement are still delayed for long periods. There are still numerous pending cases, affecting the recovery of bad debts by banks.

According to data from 15 member banks, there are currently 399 enforcement cases facing difficulties and obstacles, concentrated in major areas such as Hanoi, Ho Chi Minh City, Hai Phong, and Nghe An.

Ms. Ta Thi Hong Hoa, Deputy Head of Division 11 (Supreme People's Procuracy), noted that besides the objective reasons leading to difficulties in civil judgment enforcement by the civil judgment enforcement agencies in bank credit cases, there are also some subjective errors by the enforcement agencies, such as unclear determination of enforceable judgments. In practice, many cases have been discovered where judgments were unclear, but the enforcement agencies did not formally inquire with the court or used unclear methods of inquiry, leading to vague responses from the court, thus hindering the enforcement of judgments.

Therefore, to address the aforementioned difficulties and improve the effectiveness of civil judgment enforcement in general and enforcement related to credit institutions in particular, Nguyen Thanh Long recommended implementing a range of coordinated solutions. Although the 2008 Civil Judgment Enforcement Law was amended and supplemented in 2014, due to practical issues and obstacles, Nguyen Thanh Long suggested that the General Department of Civil Judgment Enforcement consider proposing amendments to the Civil Judgment Enforcement Law and Decree 62/2015/ND-CP (amended and supplemented by Decree 33/2020/ND-CP), especially regarding regulations on the timeframe for coercive enforcement procedures, the maximum period for delivering assets to auction winners, streamlined auction procedures, suspension of enforcement, entrustment of asset handling, and dealing with special assets such as shares, stock, and capital contributions.