Vietcombank to exceed credit limit for PVOil
Vietcombank to exceed credit limit for PVOil
Prime Minister Nguyen Tan Dung has approved a proposal under which Vietcombank can grant credit exceeding currently prescribed limits to the PetroVietnam Oil Corporation (PVOil) and affiliated parties this year.
A report in the Thoi bao Ngan hang website (Banking Times) yesterday said the move aimed to support stable development of the nation's oil and gas industry.
The decision enjoins State Bank of Viet Nam Governor Nguyen Van Binh to examine safety ratios and determine specific credit volumes as well as loan terms.
Vietcombank, a partly-equitised bank in which the State has a 77.11 per cent stake, will be responsible for all the loan agreements that it signs with PVOil.
The report said the loans will provide additional working capital that PVOil, a state-owned oil marketer under the Viet Nam Oil and Gas Group (Petrovietnam), needs to complete plans that will ensure crude oil supply to the Dung Quat Oil Refinery.
The five-year-old US$2.2-billion refinery, which produces 130,000 barrels per day, will be closed for comprehensive maintenance from May to June this year.
Consequently, the plant is expected to produce 5.1 metric tonnes (MT) of oil products worth VND113.6 trillion ($5.4 billion), down 24 per cent against 2013.
PetroVietnam produced 6.6 million MT of oil products last year, up 17.8 per cent from 2012. In 2014, the group aims to produce 4.6 million MT, down 30 per cent from 2013 due to the planned maintenance work at Dung Quat.
Viet Nam imported 1.29 million MT of crude oil for $1.1 billion last year, up 77.2 per cent in volume and 70.4 per cent in value from 2012.
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