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WORKSHOP OUT-OF-COURT WORKOUT: INSIGHT AND BEST PRACTICES FROM THE FIELD ON 18 AND 19/12/2024

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WORKSHOP OUT-OF-COURT WORKOUT: INSIGHT AND BEST PRACTICES FROM THE FIELD ON 18 AND 19/12/2024

On 18 and 19/12/2024, Workshop on “Out-of-Court Workout: Insight and best practices from the field” and Training on “Out-of-Court Workouts and Alternative Methods of Resolving NPLs” were co-organized by the Vietnam Banks Association (VNBA), in collaboration with the International Finance Corporation (IFC) under the World Bank Group (WBG) in Hanoi. 

The Workshop was hornoured to welcome Dr. Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banks Association, chairing the Workshop and the Training; Lawyer. Mediator Nguyen Hung Quang, President of Vietnam International Commercial Mediation Center (VICMC), Managing Partner of NHQuang&Associates; Ms. Nina Pavlova Mocheva – Senior Financial Sector Specialist of the World Bank Group; IFC experts and Vietnam experts.

Dr. Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banks Association
Lawyer. Mediator Nguyen Hung Quang, President of Vietnam International Commercial Mediation Center (VICMC), Managing Partner of NHQuang&Associates
Ms. Nina Pavlova Mocheva – Senior Financial Sector Specialist of the World Bank Group
Mr. Nguyen Hong Quan, Member of the Council of Vietnam Banks Association, Deputy General Director of TPBank
Mr. Peter Gothard, Head of Restructuring, KMPG Australia

Out-of-court Workout – OCW is a negotiation/mediation method (with the participation of a third party) to restructure debts with the participation of multiple creditors and a debtor facing financial distress. This is a civilized settlement process between credit institutions (lenders) and businesses (borrowers) to settle debts between businesses and credit institutions. OCW will help increase debt recovery rates, reduce bad debt rates for credit institutions; help businesses in debt avoid bankruptcy, overcome temporary financial difficulties, and bring benefits to all parties involved.

Therefore, the WBG’s expert team proposes an OCW framework for Vietnamese banks.

President Nguyen Hung Quang, as a member of the expert team presented an overview of the Draft Model OCW principles and participated in coordinating the turnaround exercise for a hypothetical scenario where a debt due needs to be restructured with multiple creditors.

Dr. Nguyen Quoc Hung and Ms. Nina Pavlova Mocheva shared the same idea on OCW mechanism plays an important role in limiting bad debt and making an essential contribution to the sustainability of the financial system. Hence, it is necessary to build OCW, creating a foundation for parties to voluntarily participate in the process of handling bad debt. Since, it will facilitate the implementation of OCW and form a negotiation culture with the rights of parties in handling debt out of court.

Vietnam International Commercial Mediation Center (VICMC) with experts with many years of experience in negotiation, mediation, banking and finance, and dispute board is ready to support customers to learn about the OCW mechanism and apply it in the future.

Secretariat

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