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BUSINESS REPORT

Soft landing sought

Local airlines are seeking access to government financial support to
ease the burden imposed by the Covid-19 crisis and rising competition.
T Linh ngoc rEPOrTS

PHOTO: VIET TUAN

he government recently approved an to existing shareholders to raise charter capital. the carrier told VET. “With 86.19 per cent of
interest-free VND4 trillion ($173 mil- The State Capital Investment Corporation charter capital, the management and opera-
T lion) refinancing package for Vietnam has been asked to buy State shares. Disburse- tions of Vietnam Airlines fall under the respon-
Airlines, according to information contained ment of the refinancing is to be no later than sibility of the government, so it is necessary
in an official letter released in early January. December 31, 2021. The State Bank of Vietnam for it to provide supporting policies.”
The national flag carrier previously sought (SBV) is responsible for directing credit insti-
approval for a refinancing package of VND12 tutions to restructure the repayment terms Financial solutions
trillion ($519 million) to overcome the crisis and keeping the debts intact, while deter- Domestic carriers have appealed for gov-
triggered by Covid-19, including a loan of at mining the appropriate rate of provisioning ernment support to overcome the difficulties
least VND4 trillion ($173 million) with pref- for credit losses. “Proposing support solutions posed by the pandemic. According to an
erential interest rates. from State shareholders is part of efforts to announcement at an extra-ordinary share-
Under the government’s decision, the air- ensure cash flow for Vietnam Airlines to holders’ meeting on December 29, Vietnam
line is also permitted to issue additional shares maintain operations,” a representative from Airlines anticipates losses of VND12 trillion

28 | VIETNAM ECONOMIC TIMES | FEBRUARY 2021