Three banks pledge interest-free loans to support Vietnam Airlines

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HANOI, June 21 (Reuters) – Three Vietnamese banks have pledged 4 trillion dong ($ 173.8 million) to Vietnam Airlines (HVN.HM) to help the ailing national carrier weather the impact of pandemic and avoid bankruptcy, state media reported on Monday.

Vietnam Maritime Commercial Joint Stock Bank (MSB.HM), Saigon – Hanoi Commercial Joint Stock Bank (SHB.HN) and SeABank (SSB.HM) would provide the interest-free loans this month and early next month, the Lao Dong newspaper. the central bank as saying.

Vietnam Airlines did not immediately respond to a request for comment.

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The report said that a plan for Vietnam Airlines to issue new shares to its existing shareholders in order to raise funds would be ready by the end of the year.

The airline, 86% owned by the government, reported a net loss of 4.97 trillion dong in the first quarter.

State media last week quoted the Planning and Investment Ministry as saying the airline would likely experience a net loss of dong 10,000 billion in the first half of this year and was on the verge of bankruptcy.

Vietnam Airlines announced earlier this month that it would sell 11 Airbus (AIR.PA) A321 aircraft through an auction.

($ 1 = 23,015 dong)

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Report by Khanh Vu; Editing by Martin Petty

Our Standards: Thomson Reuters Trust Principles.

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