Vietnam Air Faces Insolvency Risk Without Loan Extension

Reported about 1 year ago

Vietnam Airlines may face insolvency as early as July if the repayment deadline for a government-backed loan isn’t extended, according to the National Assembly. The airline is in a financial crisis due to delays in completing refinancing efforts and restructuring non-core investments. The parliament’s economic committee deems the situation urgent and urges swift action. Vietnam Airlines received low-cost loans in 2021, which were refinanced at 0% interest. The government proposes three loan repayment extensions through 2027 to support the airline's restructuring goals, aiming for a profit in 2024 after recording losses in the previous year.

Source: YAHOO

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