Vietnam offers loans to ailing shipbuilder Vinashin

Vinashin's logo at its headquarters in Hanoi on 19 July 2010
Image caption The Vietnamese government says it will not bail Vinashin out

The Vietnamese government says it will offer interest-free loans to shipbuilder Vinashin to pay salaries, after the company failed to make the first repayment of a big foreign loan.

Vinashin is one of Vietnam’s largest state-owned companies.

But over-expansion took it to the brink of bankruptcy and it is now being restructured.

Vietnam’s sovereign credit rating was recently downgraded, partly because of Vinashin’s troubles.

Vinashin – also known as Vietnam Shipbuilding Industry Group – ran up debts of about $4.5bn (£2.8bn) after a period of rapid expansion.

On 20 December it missed the first repayment of a $600m loan arranged by Credit Suisse in 2007. It is reportedly seeking a one-year delay in repayments.

The Vietnamese government has said it will not bail out the shipbuilder, which employs tens of thousands of workers.

But the interest-free loans – from the state-owned Development Bank of Vietnam – will pay salaries and workers’ insurance, the government said in a statement late on Monday.




About Uy Do

Banking System Analyst, former NTT data Global Marketing Dept Senior Analyst, Banking System Risk Specialist, HR Specialist
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