German Ship Bank HSH Needs More Aid

MarineLink.com
Wednesday, February 26, 2014

By Jan Schwartz, Reuters

Troubled German public-sector bank HSH Nordbank will likely need more state aid than previously thought due to deep losses in shipping lending and back taxes, the bank's supervisory board chairman said.

The bank, one of the world's biggest shipping financiers, has said up to now that it may need up to 1.3 billion euros ($1.79 billion) in state backing from 2019 to 2025.

"I wouldn't be surprised if we came to the conclusion, while looking at our 2013 results, that it will come out just a tick above that," Thomas Mirow told journalists late on Tuesday in comments embargoed for Wednesday.

He declined to be specific because the bank's 2013 results had not been finalised yet, but said the increase would likely be in the hundreds of millions of euros.

The bank, battered by a four-year slump in the shipping industry, expects to post losses in 2013 of less than 1 billion euros, some of it due to regulatory fines and late tax payments.

Ship charter rates have fallen below breakeven levels as a slew of new vessels, ordered during the boom years, enter service. That has already bankrupted several major players and driven others into restructuring as they found themselves unable to service their debt.

HSH has already set aside provisions of around 3 billion euros on its shipping portfolio.

The regional states of Hamburg and Schleswig-Holstein, which own 85 percent of HSH, back the bank with 10 billion euros in guarantees.

($1 = 0.7282 euros)

(Writing by Thomas Atkins; Editing by Maria Sheahan)

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Bangladesh Aims to be World's 'First Solar Nation

Residents of Islampur, a remote village in the northern Bangladeshi district of Naogaon, were stunned one night last summer when the darkness was suddenly illuminated

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

U.S., India to Seal Nuclear Deal

The United States and India have reached a breakthrough on two issues holding up civil nuclear cooperation between them, U.S. President Barack Obama told a news conference in New Delhi on Sunday.

Finance

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

U.S. Refinery Workers' Contract Talks Moving Slowly

With just a week of bargaining left until the national contract for U.S. refinery workers expires, the United Steelworkers union (USW) said talks with oil company

Obama, Modi Aim High on India Trip

In a fresh bid to make India an enduring strategic partner, U.S. President Barack Obama lands in New Delhi on Sunday for a highly symbolic parade and to nurture

News

Bangladesh Aims to be World's 'First Solar Nation

Residents of Islampur, a remote village in the northern Bangladeshi district of Naogaon, were stunned one night last summer when the darkness was suddenly illuminated

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

U.S., India to Seal Nuclear Deal

The United States and India have reached a breakthrough on two issues holding up civil nuclear cooperation between them, U.S. President Barack Obama told a news conference in New Delhi on Sunday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Pipelines Port Authority Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1649 sec (6 req/sec)