Vinashin given two more years for debt repayment

Under the dispatch of the government Office, deputy prime minister Nguyen Sinh Hung approved in principle for Vietnam Development Bank (VDB) to extend the debt repayment duration of Vietnam National Shipbuilding Industry Group (Vinashin) by two more years.

In addition, deputy prime minister also suggested Vinashin should review production and business plans, and find partners to sell the ships that were cancelled by the previous owner to have capital sources for debt repayment for VDB.

Earlier, in November 2010, Vinashin’s chair of member council, Nguyen Ngoc Su, said Vinashin’s official total debts were 86.565 trillion dong. But, Vinashin’s debts are now being invested in shipbuilding projects of the group’s subsidiaries.

After handing over these ships for Vietnam National Oil and Gas Group (PetroVietnam-PVN) and Vietnam National Shipping Lines (Vinalines), Vinashin’s total debts will be reduced to over 63 trillion dong.

Currently, Vinashin’s valid shipbuilding contracts are 130 ships valued at nearly $2.1 billion, of which, the contracts for export are 57 ships for over $1.2 billion and those for domestic consumption are 73 units worth nearly $830 million. – Vietbiz24

Tags: Vinashin debt

Posted by VBN on May 6 2011. Filed under Shipbuilding. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry