Korean shipyards to receive financial assurance

Seoul: The Korea Export Insurance Corp has pledged $1.19bn to sustain exports from South Korean shipyards during the current global financial crisis. According to the Asia Pulse, funds from the state-run export insurer are expected to allow Samsung Heavy Industries and STX to launch a total of six ships without worrying about orders being retracted because of financing problems.

The vessels, four 160,000-ton liquefied natural gas carriers and two 13,000-ton container ships, have been ordered by MSC, NYK and Teekay. The move for monetary assurance comes at a time when local yards have voiced concerns about possible cancellations of vessels on their orderbooks - particularly when a number of high profile financial institutions (including Lehman Brothers) have become victims of the credit crunch. [30/09/08]

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