UPDATE: Ship Lending Seen Up To $40 Billion Lower In 2009-Petrofin
27 Octubre 2009 - 7:53AM
Noticias Dow Jones
Global lending for the shipping sector will fall to between $410
billion and $420 billion by the end of 2009 as cancellations and
cuts in lending kick in, the Managing Director of shipping firm
Petrofin SA told a dry bulk shipping market conference in
London.
This is down from $450 billion of shipping finance committed at
the end of 2008, Ted Petropoulos said.
"The year 2009 has seen a severe drop in fresh lending and a
significant reduction in loan commitments," he added.
Loan books are also shrinking naturally due to loan repayments,
vessels sales, and vessel pre-payments, Petropoulos said.
This leaves the future of shipping finance less certain, he
noted.
The Royal Bank of Scotland PLC (RBSB) and HSH Nordbank account
for 19.55% of loans to the shipping sector, and have already stated
their intention to downscale this in the future.
Around 13 other key banks have adopted a neutral or unclear
stance towards shipping finance, he added.
This means there will be problem for capacity to be financed
going forward since around half the industry's key banks have now
taken a noncommittal stance towards shipping, he said.
New money lending for the shipping sector has already fallen to
$15 billion in the first nine months of the year from $67 billion
in the same period a year ago.
"It's going to be very difficult for the new banks that are
coming in to match this erosion of commitment, and I expect
therefore a continued credit squeeze for 2010, returning to more of
a balance in 2011," he said.
"The recovery in the dry bulk market has supported this
conciliatory approach (by banks), but the fall in tanker vessel
values and earnings, and the collapse of containers, is a growing
concern," he added.
New lenders, especially in the Far East, more owner capital, and
private equity financing will likely now come forward to plug the
financing shortfall, Petropoulos said.
"Banks need to deleverage and need time to clean up their
portfolios and consider shipping finance in a more positive
light... New lending capacity will be relatively scarce in the next
two to three years," he added.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413;
andrea.hotter@dowjones.com