News
Vietnam Airlines fears insolvency if government loan not rescheduled
June 28th 2024
Vietnam Airlines (VNA) could be insolvent as early as next month unless the government agrees to a new timeframe for its repay of a state-funded loan, the National Assembly website states. Read More » Bloomberg Markets reports the SkyTeam member has not finalized its refinancing that includes restructuring of non-core investments and the sale of new shares. It is reported the process has been held up by delayed regulatory approvals. The parliament’s economic committee said Vietnam Airlines is in an urgent situation and called on the legislative body to act quickly. The airline received 4 trillion dong ($157 million) in low-cost loans from commercial banks that were then refinanced at 0% interest by the central bank in 2021. The government has recommended approval of three loan repayment extensions, to December 31, 2027 to allow the flag carrier to complete restructuring.
