Income drops by 90%, airways ask for curiosity discount, debt restructuring

For the reason that 4th outbreak in Vietnam till now, airways have fallen right into a harmful scenario, income has decreased by 80-90%; severe scarcity of money movement; principal and curiosity elevated; the collected belongings and monetary sources of the companies are exhausted; The chance to entry loans may be very troublesome… Experiences of Vietnamese airways present that: The necessity for assist to beat capital difficulties is essentially the most pressing and essential.

Lately, the Vietnam Aviation Enterprise Affiliation has written a petition to the State Financial institution of Vietnam to regulate Round 03/2021/TT-NHNN dated April 2, 2021 (“TT03”) on rescheduling cost deadlines. debt, exempt, cut back curiosity and charges, hold the identical debt group to assist prospects affected by the COVID-19 epidemic.

  Revenue fell by up to 90%, airlines asked for interest reductions, debt restructuring - Photo 1.

Firstly, broaden the themes/restructured money owed, particularly making use of the debt rescheduling, curiosity exemption and discount, conserving the group of payables and new arisings throughout the epidemic outbreak. (for each disbursements each earlier than and after 10/6/2020). In truth, the present problem of the enterprise is because of the lack of short-term money movement to pay bills to take care of manufacturing actions. The regulation that solely debt restructuring for loans earlier than June 10, 2020 makes short-term loans virtually not eligible for restructuring below TT03; This places nice stress on the short-term money movement of the enterprise, making it inconceivable for the enterprise to repay its money owed on time, thereby producing unhealthy money owed, making it inconceivable to borrow new to take care of operations.

Second, extending the time for restructuring the reimbursement time period for excellent balances which have the duty to pay principal and curiosity; hold the debt group unchanged; the implementation of exemption and discount of curiosity and charges for the interval from January 23, 2020 to the subsequent day after three months – 6 months because the Authorities introduced the tip of the COVID-19 epidemic (or introduced the traditional state new) in accordance with Round 01/2020/TT-NHNN (“TT01”) as an alternative of the time restrict as of December 31, 2021. The reason being that after the tip of the epidemic, companies nonetheless want three to six months to stabilize once more, whereas Covid-19 has affected all through 2020 to date and is anticipated to proceed. difficult, lasting no less than the tip of 2021.

Thirdly, for medium and long-term loans, even when the epidemic is below management, companies want time to stabilize, restore manufacturing, and regularly enhance money movement; Till the income comes again, there will likely be cash to pay the financial institution debt. It is vitally troublesome for enterprises to take care of money movement to each guarantee manufacturing actions and repay money owed inside 12 months from the date the financial institution restructures the reimbursement time period (together with the debt extension interval). as laid out in TT03. Subsequently, it’s obligatory to increase the restructuring interval to 18-24 months or adjust to Round 01 which is “12 months from the final day of the mortgage time period”.

  Revenue fell by up to 90%, airlines asked for interest reductions, debt restructuring - Photo 2.

Fourth, TT01 and TT03 solely regulate debt restructuring for loans and monetary leasing, whereas the Covid-19 pandemic impacts companies in lots of points, so extra suggestions apply. the rescheduling of the reimbursement interval, the exemption and discount of curiosity on excellent loans arising from different credit score granting operations equivalent to assure, LC, factoring, and so on.

Moreover, to be able to cut back stress on capital sources, provisioning prices in addition to create circumstances for business banks to implement Round 01 and Round 03 within the spirit of “harmonious advantages, shared dangers”, the Settlement The affiliation proposed the Governor of the State Financial institution to contemplate and difficulty a refinancing mechanism just like Round 04/2021/TT-NHNN in order that business banks for personal airways have been affected. Loans straight affected by Covid-19 rely on the enterprise dimension of every agency, with an quantity of VND 4,000 billion – VND 5,000 billion, preferential rate of interest, the refinancing time period is 12 months and might be prolonged when affected. The consequences of the epidemic continued to linger.