Banks are now ‘paying’ to get out of their financing commitments

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The escalating financial crisis that has brought the global shipping industry to a standstill has taken a new twist after it was divulged that one German bank is reported to have paid a ship owner to get out of a newbuilding financing arrangement.

Shipowning sources contacted by SMI confirmed that the bank not only paid off the shipowner’s deposit at the shipyard but paid him an additional $3million bonus to enable it to walk away from the deal.

The drastic financing situation has seen many banks re-examine the fine print of their financing contracts with ship owners and seek any means fair or adventurous, to relieve themselves of their involvement. Indeed, many are now seeking higher levels of collateral from owners seeking financing which some believe could be the pre-cursor to the start of bankruptcies in the owning sector.