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S.Korea doubles support for
shipbuilders to $7 bln
South Korea, the world's biggest shipbuilding nation, has doubled its planned financial support for troubled
shipbuilders and related suppliers to $7 billion, citing deepening liquidity problems amid an order draught. The global
shipbuilding industry is suffering a major downturn as orders have screeched to a halt due to a collapse in world trade
and shipping company's financing difficulties.
Shippers worldwide are idling their fleets, while order delays and cancellations are spreading from second-tier
shipmakers to the big players. The South Korean government said in a statement on Thursday that the Export-Import
Bank of Korea and the Korea Export Insurance Corp would provide a combined 9.5 trillion won ($7.1 billion) in loans
and payment guarantees for shipbuilders and suppliers.
The amount was increased from a previous plan of 4.7 trillion won. Of the total, 7 trillion won has been earmarked for
supporting small and medium-sized shipbuilders and their suppliers. Separately, South Korea also plans 11.5 trillion
won in lending for shipping companies at home and abroad, to help them finance vessel orders. South Korea is home
to the world's biggest shipyards -- Hyundai Heavy Industries (009540.KS), Daewoo Shipbuilding & Marine Engineering
(042660.KS), Samsung Heavy Industries (010140.KS) and STX Offshore & Shipbuilding (067250.KS). Ship orders have
largely evaporated since the second half of 2008. Even the leading South Korean shipyards have won almost no order
this year, the lone exception of Samsung Heavy's January deal for a $680 million oil production unit. Source:
reuters.com
S.Korea doubles support for
shipbuilders to $7 bln
South Korea, the world's biggest shipbuilding nation, has doubled its planned financial support for troubled
shipbuilders and related suppliers to $7 billion, citing deepening liquidity problems amid an order draught. The global
shipbuilding industry is suffering a major downturn as orders have screeched to a halt due to a collapse in world trade
and shipping company's financing difficulties.
Shippers worldwide are idling their fleets, while order delays and cancellations are spreading from second-tier
shipmakers to the big players. The South Korean government said in a statement on Thursday that the Export-Import
Bank of Korea and the Korea Export Insurance Corp would provide a combined 9.5 trillion won ($7.1 billion) in loans
and payment guarantees for shipbuilders and suppliers.
The amount was increased from a previous plan of 4.7 trillion won. Of the total, 7 trillion won has been earmarked for
supporting small and medium-sized shipbuilders and their suppliers. Separately, South Korea also plans 11.5 trillion
won in lending for shipping companies at home and abroad, to help them finance vessel orders. South Korea is home
to the world's biggest shipyards -- Hyundai Heavy Industries (009540.KS), Daewoo Shipbuilding & Marine Engineering
(042660.KS), Samsung Heavy Industries (010140.KS) and STX Offshore & Shipbuilding (067250.KS). Ship orders have
largely evaporated since the second half of 2008. Even the leading South Korean shipyards have won almost no order
this year, the lone exception of Samsung Heavy's January deal for a $680 million oil production unit. Source:
reuters.com