Three banks pledge interest-free loans to prop up Vietnam Airlines
Three banks pledge interest-free loans to prop up Vietnam Airlines
Three Vietnamese banks have pledged to lend 4 trillion dong ($173.8 million) to Vietnam Airlines to help the troubled flag carrier weather the impact of the pandemic and avoid bankruptcy, state media reported on Monday.
Vietnam Maritime Commercial Joint Stock Bank, Saigon - Hanoi Commercial Joint Stock Bank and SeABank would make the interest-free loans this month and early next month, the Lao Dong newspaper cited the central bank as saying.
Vietnam Airlines did not immediately respond to a request for comment.
The report said a plan for Vietnam Airlines to issue new shares to its existing shareholders to raise funds would be ready by year-end.
The airline, which is 86% owned by the government, reported a net loss of 4.97 trillion dong ($215.6 million) in the first quarter.
State media last week cited the Ministry of Planning and Investment as saying the airline would likely make a net loss of 10 trillion dong ($433.8 million) in the first half of this year and was on the brink of bankruptcy.
Vietnam Airlines earlier this month said it would sell 11 Airbus A321 aircraft through an auction.
