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Three banks pledge interest-free loans to prop up Vietnam Airlines

Published 06/21/2021, 04:01 AM
Updated 06/21/2021, 04:10 AM
© Reuters. FILE PHOTO: A Vietnam Airlines Airbus A330-200 plane prepares for landing at Noi Bai airport in Hanoi, Vietnam November 21, 2016. REUTERS/Kham/File Photo

By Khanh Vu

HANOI (Reuters) - 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 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 in the first half of this year and was on the brink of bankruptcy.

© Reuters. FILE PHOTO: A Vietnam Airlines Airbus A330-200 plane prepares for landing at Noi Bai airport in Hanoi, Vietnam November 21, 2016. REUTERS/Kham/File Photo

Vietnam Airlines earlier this month said it would sell 11 Airbus A321 aircraft through an auction.

($1 = 23,015 dong)

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