On the morning of June 29, the National Assembly passed the Resolution of the 7th Session of the 15th National Assembly with 100% of the delegates present voting in favor.
In this Resolution, the National Assembly allows the State Bank to automatically extend the repayment deadline three times for the remaining refinancing balance of credit institutions that are lending to Vietnam Airlines Corporation to supplement capital for production and business activities as prescribed in Point a, Clause 11, Article 1 of Resolution No. 135/2020/QH14 dated November 17, 2020 of the National Assembly.
The extension period for each time is equal to the first recapitalization period, the total maximum extension period for recapitalization shall not exceed 5 years (including 2 extensions under Resolution No. 135/2020/QH14).
The National Assembly assigned the Government to direct the State Capital Management Committee at Enterprises, relevant agencies and Vietnam Airlines to develop a comprehensive development strategy; urgently complete the overall project of solutions to remove difficulties for Vietnam Airlines to soon recover and develop sustainably.
In addition, accelerate the comprehensive restructuring of Vietnam Airlines in accordance with the spirit of Resolution No. 12 dated June 3, 2017 of the 5th Conference of the 12th Party Central Committee on continuing to restructure, innovate and improve the efficiency of State-owned enterprises; clearly identify objective and subjective causes, especially causes due to obstacles in legal documents during the process of developing the overall Project, and propose timely solutions.
“Clearly define the responsibilities of agencies and organizations in implementing commitments to the National Assembly on the effectiveness of implementing solutions on refinancing loans. Relevant agencies shall strengthen inspection, auditing and supervision to ensure that the implementation of solutions is in accordance with regulations,” the Resolution stated.
Previously, according to the Government's submission, from July 23, 2021 to December 24, 2021, based on credit contracts signed with credit institutions, Vietnam Airlines completed the use of a loan package with a total value of VND 3,999.96 billion.
The disbursed amount is disbursed by credit institutions based on invoices, documents and paid directly into the supplier's account based on the payment schedule agreed with the suppliers. The credit institutions lending to Vietnam Airlines have been refinanced by the State Bank corresponding to the disbursed value.
As of December 31, 2023, Vietnam Airlines has fully paid VND220 billion in interest to credit institutions. According to the provisions of the National Assembly Resolution and credit contracts, from July to December 2024, Vietnam Airlines is obliged to pay the entire principal debt.
However, due to the consequences of the Covid-19 pandemic and the continued volatility and risk of the business environment, Vietnam Airlines' financial status in 2024 has not improved as expected.
It is expected that by the end of 2024, the equity of the parent company Vietnam Airlines and the consolidated equity will still be negative at VND8,237 billion and VND13,108 billion, respectively. Short-term loans (including loans from refinancing sources) and overdue debts of Vietnam Airlines are at high levels, in which the refinancing loan with a repayment period from July 2024 and many debts from the previous period will be due in 2024.
In addition, Vietnam Airlines' cash flow in 2024 will continue to be in deficit. Asset restructuring and portfolio restructuring solutions have not been implemented in time, so Vietnam Airlines cannot repay the refinancing loan on time.
Based on the above practice, the Government proposes to allow the State Bank to automatically extend the repayment deadline by 3 times for the remaining refinanced debt of credit institutions that are lending to Vietnam Airlines to supplement capital for production and business activities.
Each extension period is equal to the first refinancing period, the total maximum refinancing extension period is not more than 5 years; interest rate 0%/year; no collateral.
VOV.VN - The Government has proposed that the National Assembly extend the repayment of the VND4,000 billion recapitalization loan to "rescue" Vietnam Airlines, in order to help the national airline avoid falling into insolvency in 2024, without serious consequences.
Source: https://vov.vn/kinh-te/quoc-hoi-dong-y-gia-han-khoan-vay-4000-ty-dong-cho-vietnam-airlines-post1104633.vov
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