December 3, 2008
Germany to help yards hit by credit crunch
The German Federal Government is to act rapidly to help German shipyards hit by the credit crunch.
It will use the state-owned KfW-Bank to secure credit for shipowners having problems with arranging financing for ships. The KfW bank will guarantee up to 90 percent of an individual loan, local media report Dagmar Wöhrl, State Secretary of the Federal Economics Ministry as saying. Secretary Wöhrl is to organize, as rapidly as possible, a round table for all those in Germany involved in the financing and building of ships.
Local media quote Werner Lüken of the German shipbuilders' association VSM as saying that 58 orders for 190 newbuildings at German yards are endangered--including some ships that that are nearing delivery.
Nationwide, orders for 25 vessels worth some EUR 600 million have already been canceled.
Werner Lüken says that unless yards can proceed with planned newbuildings over 2,000 jobs are immediately at risk.