Treasury to guarantee Turkish Export Credit Bank loans
A TURKISH government scheme designed to offer financial support to parts of the country’s beleaguered shipping industry has been given the greenlight.
Aslan Paksoy, managing partner of Finship Turkey, which advises the Turkish Export Credit Bank on ship finance matters, told Lloyd’s List that the scheme has been approved.
During the boom, some Turkish shipping yards rushed to build ships on spec. But the ferocity of the downturn caught them unawares, leaving the yards with little chance of securing either a charterer or owner for their asset.
Following the government’s move, Turkish banks are now more likely to consider lending to these companies as any loan would be guaranteed by the treasury. With a loan in place, shipyards – or an owner – would able to end the financial stalemate, complete the unfinished newbuilding and, subsequently, move the ship into the market.
According to a Turkish ship finance lawyer, 10 projects are to be included in the scheme. The state-backed scheme has been broadly welcomed by Turkish banks lending to the shipping industry.