Vietnam Airlines gets gov’t approval for $173 mln loan to weather COVID-19 crisis

Bich Phuong Saturday | 01/09/2021 00:09

Photo: dautu.vn

Vietnam Airlines has got government’s approval for VND4 trillion ($173 million) refinancing loan with preferential rate at zero percent, Dau Tu Newspaper cited informtion from the government official letter.

Previously, the national flag carrier sought approval for a refinancing loan worth VND12 trillion ($518.57 million), including a loan of at least VND4 trillion with preferential interest rates to overcome the crisis.

Under the government decision, the national airline was also allowed to issue additional shares to existing shareholders to increase its charter capital. State Capital Investment Corporation was asked to buy shares of State shareholders in Vietnam Airlines.

The disbursement time for refinancing is no later than December 31, 2021.

The State Bank of Vietnam is responsible for directing credit institutions to restructure the repayment term and keep the debt group intact, and determine the appropriate rate of provisioning for credit losses for Vietnam Airlines.

At the meeting held by the State Capital Management Committee on November 5, Trinh Hong Quang, Deputy General Director of Vietnam Airlines, said that the whole year 2020 may lose VND13,000 billion. It could suffer losses in 2021 if the situation is not improved.

► Vietnam Airlines to borrow Government VND4 trillion to overcome crisis