Riding to the rescue: Bank of China starts lending to foreign owners

Beijing: Amid the severe ship ordering downturn state-run Bank of China has started to lend to foreign owners with orders in China for the first time. The bank has extended a $149m credit line to Germany’s Schulte Group to help pay for nine chemical tankers ordered in 2007 at Jiangzhou Union Shipbuilding in Jiangxi province.
The bank has been doling out cash to both Chinese yards and owners this year as part of the Beijing sanctioned stimulus package.
Other Chinese banks have been quicker to step in and help foreign owners. For instance, this August state run Exim Bank splashed $398m in credit to New York-listed Overseas Shipholding Group, to help fund the construction of three VLCCs and two aframaxes at China’s New Times Shipbuilding. [18/11/09]