This continued a trend down since 2008 and the height of the Greek newbuilding programme when lending stood at just under $74bn supporting some 1,000 ships on order.
In all 51 banks had Greek shipping customers, down from 55 mainly reflected the reduction of Greek bank activity and the departure of three banks. Indeed, Greek bank loans for the industry fell 12.5%.
European banks continued to dominate the business though their share fell from 95.6% to 92%.
Ted Petropoulos, managing dircetor of Petrofin said as the European banking industry steadily achieved higher capital ratios, European finance for shipping would show a slow recovery in 2014 “aided by a modest shipping market recovery”.
But, warned the strength of the recovery “may be variable and the recovery process itself shall be long”. Petropoulos said the larger robust companies would find finance but the smaller medium sized companies would find it very difficult.
Royal Bank of Scotland (RBS) remained by far the largest individual lender to the Greek market, with a portfolio of more than $10.5bn, a $900m reduction over the year. Credit Suisse was second with $5.2bn, just ahead of Commerzbank, which is running down its shipping portfolio. DVB and DNB round out the top five.
Biggest 10 lenders include three Greek banks — Emporiki, National Bank of Greece and Marfin Egnatia, though no Greek bank increased its business.
However, the research showed 13 of the 51 banks expanded their Greek books by an average of nearly 38%. Far Eastern banks and the rise of financing by export credit agencies, is increasing.
“Banks have been very supporting, patient and forgiving during this crisis partly out of a wish to support clients caught in an adverse market situation and relying on a market cyclical upturn to come and partly due to their own inability to withstand too many provisions and losses,” said Petropoulos.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
