Summing is coming for the world’s airlines and only a few may survive this crisis.
Three banks agree on loan for Vietnam Airlines on verge of bankruptcy.
In order to support Vietnam Airlines to overcome financial issues for surviving pandemic, MSB, SeABank, and SHB agree to provide loan packages worth $173.9 million to assist the national flag carrier.
Related: It’s official: Vietnam cuts quarantine time for vaccinated entrants to seven days
Vietnam Airlines will receive special loan packages from the three Vietnamese commercial banks, according to Nguyen Tuan Anh, director of the Credit Department for Economic Sectors under the State Bank of Vietnam.
The credit package is roughly estimated at around VND4 trillion ($173.9 million), Anh said.
The three local lenders and Vietnam Airlines are actively negotiating a mutual agreement for early disbursement, which is expected in late June and early July.
According to the Ministry of Planning and Investment, the overdue debts of Vietnam Airlines have reached VND6.240 trillion ($271.3 million). The carrier has fallen on extremely hard times and is said to be on the verge of bankruptcy.
Moreover, Vietnam Airlines is currently facing the risk of litigation with mounting overdue debts that it is finding increasingly difficult to repay.
According to Vietnam Airlines’ financial report, as of December 31, 2020, the corporation is currently borrowing VND258 billion ($11.2 million) from MSB and about VND460 billion ($20 million) from SeABank. Other lenders are Vietcombank, BIDV, VietinBank, Techcombank, MB, and Eximbank.
In its consolidated financial statement for 2020, Vietnam Airlines reported long-term debts of VND9 trillion ($391.3 million) and short-term debts of VND6.8 trillion ($295.65 million), VIR reported.