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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Ultra-deepwater Drillship 'Maersk Valiant' Delivered

Maersk Drilling advises that its second new drillship, 'Maersk Valiant', has been delivered from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea.

Miami Tugboat Oil Spill: Coast Guard Respond

The US Coast Guard says that its crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami, following a leak discovered aboard the 95-foot tugboat 'Neptune'.

Finance

North Sea Crude-Forties eases, VLCC options narrow

Forties trades at parity with dated Brent; Competing Libyan barrels returning to market. Refining margins under pressure as capacity ramps up. North Sea Forties

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Shipowners to Become Liable for Costs of Wreck Removal

Shipowner liability is on the horizon as the Nairobi International Convention on the Removal Wrecks will enter into force on 14 April 2015 following the deposit,

News

KVH Precision Sensors for Geodetics' Inertial Navigation Systems

KVH Industries entered into a strategic partnership with Geodetics Inc., a leader in the development of real-time, high-precision position and navigation solutions.

Search resumes for missing in S. Korean ferry disaster

South Korean coastguards and navy divers resumed their search on Thursday for nearly 280 people still missing after a ferry capsized in what could be the country's

POSH may raise $311 Mln in Singapore IPO

PACC Offshore Services Holdings (POSH) could raise at least S$388.27 million ($311 million) after pricing its initial public offering near the bottom of the pricing range indicated earlier,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1216 sec (8 req/sec)