ANNOUNCEMENT 10 Dec 2013In December 2013, the government of Vietnam announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 10 December 2013, the Vietnamese Finance Ministry-run Debt and Asset Trading Corporation (DATC) agreed to offer government guaranteed bonds of USD 626 million at the Singapore Stock Exchange to help the Vinashin Shipbuilding Industry Group repay its foreign creditors. The bond will be issued for a 12 year term as part of the restructuring agreement, will replace the earlier loan agreement.
Vinashin, a state-owned shipbuilder, was developed largely out of foreign investments, and on account of alleged financial malpractices was more than USD 4.5 billion in debt by the end of 2010.
The above credit agreement was finalized on 10 October 2013.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.