Vietnam Daily News

Vinashin's outstanding debts at BIDV stand at 6.6tr dong

Written by Dailynews.vn Wednesday, 14 December 2011 17:16

Outstanding debts of Vietnam Shipbuilding Industries Group (Vinashin) at Bank for Investment and Development of Vietnam (BIDV) is currently estimated at 6.6 trillion dong, of which 1.6 trillion dong will be transferred for Vietnam Maritime Corp (Vinalines), according to the information at the roadshow to introduce BIDV's IPO (initial public offering) plan held in HCM City on December 11.

After the debt transfer, Vinashin's debts at BIDV will be about five trillion dong, accounting for 2.4 percent of the bank's total outstanding loans.

Of Vinashin's total debts at BIDV, Tran Bac Ha, BIDV's chair said, about over two trillion dong was the bank's loans for Vinashin and the remainder of the debts was under the form of guarantee as assigned. As planned, BIDV will set aside loan loss provision at about 1.5 trillion dong for Vinashin's debts in 2011, and up to 3 trillion dong in the first 6 months of 2012.

Also at the roadshow, Ha said that Hoang Anh Gia Lai Group Joint Stock Co (HAG) also owes about five trillion dong at other credit institutions and HAG's debt at BIDV is 1.3 trillion dong.

Of which, HAG's total property debts at BIDV are estimated at 500 billion dong, notably, HAG committed to bring this figure down to zero in the first quarter of 2012.

HAG's investment plan is now to focus on industrial crops. By 2014, HAG will reach 100,000 hectares of rubber area in Laos and Cambodia. In addition, HAG is developing hydropower and mineral projects. HAG has rapidly switched its investment orientation from real estate to other sectors and HAG's financial flows are now very good, Ha said.

BIDV Chair also confirmed that, "investors should not be too worried" about the debts of Vinashin and Hoang Anh Gia Lai Group in BIDV.

Source: www.intellasia.net/news/articles/business/111350717.shtml