Reconciliation, debt classification, improving policy credit quality

Since mid-August, the Khanh Hoa Provincial Branch of the Vietnam Bank for Social Policies (VBSP) has coordinated with entrusted associations, unions and commune-level People's Committees to carry out the work of comparing and classifying customer debts in 2025. This is an important task to help local authorities have more accurate data to propose solutions to improve the quality of policy credit in the area in the coming time.

Focus on accurate classification

The debt reconciliation and classification at the Social Policy Bank is carried out in accordance with Decision No. 976, dated July 1, 2015 of the Prime Minister on promulgating the Regulation on debt classification at the Social Policy Bank. Accordingly, every 3 years, the Social Policy Bank conducts a general reconciliation and classification of customer debts.

To effectively carry out debt reconciliation and classification according to Decision No. 976 of the Prime Minister, from the beginning of August, the Provincial People's Committee issued a document directing the Provincial Vietnam Fatherland Front Committee, socio- political organizations, the Vietnam Bank for Social Policies and the Commune People's Committees to reconcile and classify customer debts in 2025. The time for reconciliation and classification of debts is from August 15, ending no later than November 30, 2025. The scope of reconciliation and classification is 100% of outstanding principal and interest debt until July 31, 2025.

Staff of the Provincial Social Policy Bank compare and classify debts with customers in Bac Nha Trang ward.

Immediately after the Provincial People's Committee issued a directive, the VBSP promptly assigned the leadership in charge of transaction offices to direct, support, inspect and supervise the organization of debt reconciliation and classification to ensure compliance with regulations, quality of reconciliation, debt classification and progress as required. At the same time, increase staff at branches to support transaction offices to participate in debt reconciliation and classification for units with large outstanding debts, overdue debts, irrecoverable debts, high outstanding interest to ensure accuracy and efficiency. The People's Committee at the commune level has established a steering committee for debt reconciliation and classification; approved the plan and assigned members to participate in detailed debt reconciliation and classification teams for each village. Commune-level socio-political organizations closely coordinate with the VBSP and local authorities to organize the implementation of debt reconciliation and classification to ensure the set progress.

More than 197,000 customers have their debts compared and classified.

At the end of August, at the provincial headquarters of the Social Policy Bank and the transaction offices of the Social Policy Bank, a series of reconciliation and debt classifications of customers were organized. At the reconciliation points, officers of the Social Policy Bank, representatives of entrusted socio-political organizations, heads of savings and loan groups, and heads of residential groups participated. Borrowers brought their loan books to reconcile the process of paying principal and interest and participating in savings deposits. Ms. Che Minh Thuy - Vice Chairman of the Vietnam Fatherland Front Committee of the ward, Chairwoman of the Women's Union of Bac Nha Trang ward said: The reconciliation and debt classification work was organized scientifically , divided by time frame and notified in advance to borrowers. Thanks to that, people came in full, on time and in an orderly manner.

Debt reconciliation and classification not only serve credit management but also contribute to increasing transparency and creating trust among people in the State's preferential credit policies. Thereby, local authorities and the Vietnam Bank for Social Policies have more basis to advise on solutions to improve credit quality, expand beneficiaries, and limit overdue debts and credit risks. Through the implementation of debt reconciliation and classification of customers, it shows that, as of July 31, the total outstanding debt of social policy credit programs in the province was more than VND 9,411 billion, with more than 197,000 customers with outstanding debt in 65 communes, wards and special zones. To date, more than 25% of customers in the province have had their debts reconciled and classified.

MAI HOANG

Source: https://baokhanhhoa.vn/kinh-te/tai-chinh-ngan-hang/202509/doi-chieu-phan-loai-no-nang-cao-chat-luong-tin-dung-chinh-sach-0d024c7/