Vietnam's Vinashin finishes Natixis debt repayment

Vietnam's state shipbuilder Vinashin has completed repaying its debt to French bank Natixis, using funds from the Vietnamese government's overseas bonds for part of the settlements, writes Reuters. Vinashin, which has been near bankruptcy, used the bond proceeds to repay the remaining $3 million in the $25 million loan the French bank extended, Deputy Transport Minister Nguyen Hong Truong told a news conference. "The group has now completed the debt settling duty with Natixis Bank," he said.

The overextended state conglomerate has racked up some $4.5 billion in debt, leading the government in July to reorganise the firm and later arrest several executives for mismanagement.

Truong rejected state-run media reports this month which said the government may allow Vinashin to use as much as $300 million from the $1 billion 10-year bond issued in January to settle the debt with Natixis.

Vinashin has raised $75 million by selling five ships and planned to sell another 35 ships to raise an estimated $160 million by the year's end, Minister Nguyen Xuan Phuc, head of the government's office, told the conference. The government has also injected funds worth nearly $130 million to help Vinashin complete its shipbuilding orders and ensure their delivery this year.

Vinashin has projected turnimg a profit in 2013-2014 after losses expected in 2011-2012.