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China EximBank Shanghai commits more to ship financing

China EximBank Shanghai commits more to ship financing
The Shanghai branch of Export-Import Bank of China has significantly raised the value of its credit facilities to shipyards based in Shanghai, as it aims to help the local enterprises tide through the difficult industry conditions, reports said.

In the first eight months of this year, China EximBank’s Shanghai branch has approved new loans to the shipbuilding sector with the value up 85.5% year-on-year. The financing has largely gone towards the construction of LNG carriers, containerships of 18,000 teu in capacity, offshore units, and environmentally-friendly and high-specification vessels.

Over the past three years, China EximBank Shanghai has dished out more than RMB23bn ($3.6bn) in ship financing , taking up close to 50% share among Shanghai’s financiers, local reports said.

And from January to June this year, China EximBank Shanghai extended loans amounting to RMB12bn, pointing to the significant rise in the loan value over this year alone.

In the first half of 2015, China’s shipbuilding orders and new export orders recorded a year-on-year dip, as shipbuilding enterprises faced a tough market environment amid oversupply of ships, financial stress among buyers and uncertain economic growth conditions.