South Korea Eximbank Pledges Huge Loans to Shipping
As part of the government's large-scale rescue plan for shipping sector, the Export-Import Bank of Korea (Korea Eximbank) sets a figure for loans and guarantees to the country's shipping sector.
According to Yonhap, Korea Eximbank will funnel more than 800 billion won ($749.3 million) in shipping finance as a part of the state-sponsored program to revive the shipping industry following the collapse of Korea’s flag sea carrier Hanjin Shipping.
The five-year plan for rehabilitating the maritime sector involves the building of more than 200 ships, including 140 bulk carriers and 60 container ships.
The report quoted Eun Sung-soo, Korea Eximbank chairman and president saying that the fund will be given in the forms of loans and guarantees that the shippers can use to purchase new vessels, refinance existing debts and pay for operating expenses.
"The shipping and shipbuilding industries are both facing difficulties, raising the logistics cost for exporting firms," Eun said at the meeting. "The five-year restructuring plan will strengthen the competitiveness of shipping companies, and when this leads to a positive cycle of creating demand for shipbuilders, such cost will be reduced."
The 800 billion-won aid will be provided for the purchasing of vessels, operational costs and loan refinancing, Eun said.
