State banks give lifeline to HNA to keep Hong Kong Airlines afloat

Business | 3 Dec 2019 10:11 am

State-owned banks, including China Development Bank, are lending 4 billion yuan to the the debt-laden Chinese conglomerate, HNA Group, providing a lifeline to the financially-troubled Hong Kong Airlines.

The carrier was given a Saturday deadline by Hong Kong aviation authorities yesterday to get its financial house in order and to ensure that passengers are served.

HNA will use the three-year loan at an interest rate of 4.75 percent, to pay staff salaries as well as to meet other operating costs.

The Air Transport Licensing Authority has said the airline could lose its operating license.

Eight banks are providing 500 million yuan each to HNA Group. The lenders include the Bank of China, China Construction Bank, ICBC, and the Agricultural Bank of China. 

 

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