Vietnam Airlines to soon receive VND4 trillion from rescue package
VOV.VN - Vietnam Airlines is anticipated to receive an initial capital injection of VND4 trillion through a support package with an interest rate of 0% in July as part of efforts to overcome a serious impact caused by the COVID-19 pandemic, according to a representative of the national flag carrier.
The move comes following the implementation of the Government’s resolution 194 on supporting Vietnam Airlines as it rides out the challenges caused by the pandemic.
This will see the State Bank of Vietnam reimburse loans of up to VND4 trillion to credit institutions that have previously lent to Vietnam Airlines, whilst also allowing the carrier to make rights issues to existing shareholders to supplement its own capital.
Furthermore, Vietnam Airlines will issue shares to existing shareholders in a bid to increase its charter capital, with the State Capital Investment Corporation (SCIC) exercising their right to purchase shares of the carrier.
Tran Thanh Hien, director of the firm’s Finance and Accounting Department, said that since the outbreak of the COVID-19 pandemic, the airline has managed ways of debt restructuring and payment postponements, reduced wages and used aircraft in order to deliver goods and avoid bankruptcy.
Simultaneously, Vietnam Airlines has also strengthened its exploitation of domestic routes and made preparations to reopen international routes in line with the Government's plan.
