Vietnam shipbuilder can't make debt payment

The head of Vietnam's beleaguered state-run shipbuilding company says the company does not have enough money to make a $60 million loan payment next week, and he's asked foreign creditors for more time to pay.

Nguyen Ngoc Su, Chairman of the Vietnam Shipbuilding Industry Group is quoted Tuesday in the online newspaper VietnamNet as saying that he informed creditors on Dec. 10 that it will be impossible to make the first repayment of principal due Dec. 20 on a $600 million loan from a group of creditors led by Credit Suisse.

The government has said the company known as Vinashin is responsible for paying its own debts.

Ratings agency Standard & Poor's said Monday that Vinashin's problems would likely undermine the credit quality of the country's banks.

BusinessWeek

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