The Export-Import Bank of China is anticipating a $2bn increase in loans to the shipping industry this year from around $12bn worth of deals inked in 2012, according to Chen Bin, deputy general manager, transport finance department, China Exim Bank.
Chen revealed that the bank is seeing potential deals every month and a lot of them are currently under discussions. “We believe that the committed amount may increase this year by more than $2bn,” he told Seatrade Asia Week exclusively at the Sea Asia 2013 conference and exhibition held in Singapore this week.
Chen believed that the present global shipping slump has actually presented a better opportunity for the bank to help the industry in terms of loosening cashflow. He noted that global shipowners are starting to buy more vessels now as they probably hold the view that the current low newbuilding prices will only appreciate in the near future.
“When the market is slow, we may actually make fewer mistakes. But when the market is high we should be more cautious,” Chen said, arguing that the value of a vessel may be easily overestimated to “illogical levels” during a boom market.
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