VNR asks for US$34.77 million in non-interest loans
The Vietnam Railway Corporation (VNR) has proposed borrowing non-interest loans worth VND800 billion (US$34.77 million) to deal with its difficulties caused by the COVID-19 pandemic.
The proposal had been sent to the Commission for the Management of State Capital at Enterprises.
According to Vu Anh Minh, Chairman of the VNR Members’ Council, the corporation suffered losses of more than VND1.3 trillion last year, and expected to lose an additional VND942 billion this year.
If the pandemic lasts until next year, the VNR might lose all of its equity and would not be able to pay salaries for employees, he said.
Therefore, Minh said, apart from the US$34.77 million non-interest loans, the VNR also suggested authorities give support policies to its 13,000 affected employees.
The corporation also proposed reducing the railway infrastructure use fees this year and in the following years, and reducing or exempting the land use fees for railway transportation firms this year and extending the fee payment deadlines.
Over the past five months, the railway sector earned more than VND1.11 trillion in revenue, equivalent to 81.6% of the figure recorded in the same period last year and 60.1% in the period in 2019, when the pandemic had yet to break out.
At present, 1,169 employees of the VNR have their employment contracts suspended and 136 others have taken unpaid leave.