Aviation business association seeks central bank’s support for airlines
The Vietnam Aviation Business Association (VABA) has sent a document to the Governor of the State Bank of Vietnam (SBV) requesting support for domestic airlines.
Accordingly, VABA proposes the SBV amend Circular No.03/2021/TT-NHNN on rescheduling debt repayment, exemption and reduction of interest rates and fees, and maintaining debt groups in order to support customers affected by the COVID-19 pandemic.
The association asked for expanding the loans eligible for restructuring, rescheduling debt payment and exempting or reducing interest payment for debts that are due or borrowed during the time the pandemic is going on (for loans disbursed both before and after June 10, 2020).
It also proposed extending the duration for rescheduled payment of due debts or interests, and interest and fee exemption and reduction for 3 - 6 months after the Government announces the end of the COVID-19 pandemic (or the new normal state) instead of the current time limit of December 31, 2021.
The VABA said that after the pandemic is over, businesses still need 3-6 months to restore their activities again, while the pandemic, which has affected the economic since the beginning of 2020, is forecast to last at least until the end of 2021.
According to the association, since the fourth wave of the pandemic broke out in Vietnam in late April, airlines have been in jeopardy with their revenue down 80-90%.
