Extension of pilot resolution on bad debt settlement proposed

View of a residential area in Hà Nội. Resolution No. 42/2017/NQ-QH14, which piloted handling of bad debt of credit institutions, is proposed to be extended until December 31, 2024 to create conditions for credit institutions to effectively handle bad debts, including the handling of collateral assets of real estate projects. Photo vneconomy.vn

HÀ NỘI — The HCM City Real Estate Association (HoREA) recently sent a written petition to the Prime Minister proposing an extension of a pilot resolution on bad debt settlement until the end of 2024.

Under the petition, HoREA requests the Government to propose to the National Assembly (NA) an extension of Resolution No. 42/2017/NQ-QH14, which piloted a programme that handled bad debt of credit institutions, until December 31, 2024 to create conditions for credit institutions to effectively manage bad debts, including the collateral assets of real estate projects.

According to HoREA, the pilot resolution has created conditions for credit institutions to effectively manage bad debts since 2017, especially collateral assets of real estate projects, but it expired on December 31, 2023.

HoREA also said the amended Law on Real Estate Business will take effect from January 1, 2025, so a legal gap will arise in 2024 when the new law has not been applied while Resolution No. 42/2017/NQ-QH14 has expired.

“Therefore, HoREA requests that the Government coordinate with the NA’s Standing Committee to propose the NA consider an extension of Resolution No. 42/2017/NQ-QH14 for another 12 months until December 31, 2024 to create conditions for credit institutions to effectively manage bad debts, including collateral assets of real estate projects,” HoREA said in the petition. — VNS