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SBV to disburse VND4 trillion worth of refinancing loans for VNA

SBV to disburse VND4 trillion worth of refinancing loans for VNA

A Vietnam Airlines aircraft is parked at a local airport. The State Bank of Vietnam is set to disburse refinancing loans worth VND4 trillion by the end of this month to help the national flag carrier Vietnam Airlines cope with losses caused by the Covid-19 pandemic – PHOTO: VNA

HCMC – The State Bank of Vietnam (SBV) is set to disburse refinancing loans worth VND4 trillion by the end of this month to help the national flag carrier Vietnam Airlines (VNA) cope with losses caused by the Covid-19 pandemic, said an SBV representative at a press briefing held on June 21.

In response to reporters’ inquiries about the central bank’s supporting policies for VNA, Nguyen Tuan Anh, head of the Department of Credit Policies for Economic Sectors at SBV, said that there were three credit institutions, SeaBank, MSB and SHB, that had pledged to offer VND4 trillion worth of refinancing loans backed by the central bank to the carrier.

These credit institutions and the carrier are facilitating essential procedures to sign their loan agreements, Anh added, reported Nguoi Lao Dong newspaper.

Earlier, VNA had suggested the Government grant it a Covid-19 relief package of VND12 trillion, including VND4 trillion of refinancing loans and VND8 trillion by issuing shares to its existing shareholders to raise charter capital, aimed at removing obstacles caused by the pandemic.

Besides this, for the medium and long term, it proposed the Government underwrite the carrier's scheme to issue bonds worth VND10 trillion with a 10-year term, in order to implement a project to invest in its fleet in the 2021-2025 period.

In late November last year, the National Assembly gave the green light to the carrier’s proposal by allowing the central bank to refinance and offer loan extensions to credit institutions that would lend the carrier additional capital to maintain its operations.

In late March this year, the prime minister signed a decision allowing SBV to provide refinancing loans worth VND4 trillion to credit institutions that are lenders of the national flag carrier. Interest rates for refinancing loans are set at 0% per year, which is also applicable for any extension for such loans.

A recent report of the Ministry of Planning and Investment revealed that VNA could incur losses of VND4.8 trillion in the first quarter of this year and the figure of the first half could reach VND10 trillion.

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