The Vietnam Shipbuilding Industry Corporation (Vinashin) still owes VND292.148 billion (USD14 million) in unpaid debts to the Vietnam Development Bank (VDB) as of January 31.
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| Vinashin’s total oustanding debts amount to more than VND290 billion |
The loan has been used to cover salary arrears and employee insurance.
The Government Office said that on December 24, 2010, the Prime Minister had approved a proposal to allow Vinashin to borrow money to pay salaries, social insurance, health insurance, unemployment insurance, severance allowances, job creation and job training fees. Its loan was also approved by Minister of Labour, Invalids and Social Affairs and the Ministry of Finance.
According to the proposal, all the enterprises under Vinashin and Vinashin's enterprises transferred to Vietnam National Shipping Lines (Vinalines) can borrow money from the VDB at 0% interest and 12 months loan term to cover the unpaid salaries and insurances.
Currently, Vinashin are in debt to more than 40 credit organisations include a VND6.3 trillion (USD300 million) debt to the Bank for Investment and Development of Vietnam (BIDV).