ANNOUNCEMENT 10 Apr 2012
On 10 April 2012, the Export-Import Bank of Korea (Korea Eximbank) announced increasing financial support to the Korean shipping industry.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 10 April 2012, KRW 400 Billion to be Extended to Korean Shipping Companies: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=35&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16712
The additional funds made available for trade finance have a total value of USD 400 million. They are intended for Korean shipping companies' overseas business. The Korean Eximbank intends to allocate more than half to Korean SMEs which are active in the shipbuilding industry.
In this context, the further Bank elaborated: "For companies with sound profit structures (for example, securing profitability by concluding charter contracts before ship delivery) the Bank will increase the debt to ship price ratio from 70% to 80%. In addition, the Bank will consider temporarily suspending Loan to Value (LTV) ratio requirements if the recession in the marine transport industry persists and drags down ship prices. Moreover, Korea Eximbank will actively strive to stimulate Korean ship financing by pursuing co-financing and forming shipping funds with commercial banks."
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.