>>Interest free loans proposed for Vinashin to reimburse workers
PM Nguyen Tan Dung will allow Vietnam’s troubled ship-building giant Vinashin to receive government sponsored interest-free loans to pay its employees.
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| Vietnam’s troubled ship-building giant Vinashin will receive government sponsored interest-free loans to pay its employees. |
The loans are extended to State-owned Vinashin and Vinalines (Vietnam National Shipping Lines) subsidiaries as well as employees who lost jobs or contracts over the debacle.
The loans will be offered at interest-free according to a directive from Prime Minister Nguyen Tan Dung.
The directive was made December 24, 2010 in which the PM allowed the subsidiaries and employees from Vinashin and Vinalines to get free loans from the Vietnam Development Bank to pay wage, allowances and health, social, and unemployment insurances for their workers.
According to the directive, the maximum loan is equal to the amount of money they need to arrange the above expenditures and the maximum maturity is 12 months.
Currently, Vinashin owes salaries totaling VND102.6 billion (USD5.13 million) to employees and VND134 billion (USD6.7 million) of social insurance benefits to its staff.
Ealier, the Ministry of Labour, Invalids and Social Affairs proposed the government provide loans with zero interest rates for troubled Vinashin’s restructuring plans.
Employees who hold 12-36 month-term contracts or had been working for at least 12 months before losing their job in 2010 and 2011 can get interest-free loans from the National Fund for Job Creation to get vocational training.
The PM’s decision will become effective from February 15, 2011.
