HAMBURG (dpa-AFX) - German shipyards are now eligible for guarantees from a federal program specifically designed for large-scale orders. Christoph Ploß (CDU), the Federal Government Coordinator for the Maritime Industry, announced the move during a visit to the Blohm+Voss shipyard in Hamburg. The decision was first reported by "Welt am Sonntag."
The background to this decision is that shipyards often have to pre-finance the construction of vessels. According to Ploß, orders can range from hundreds of millions to even billions of euros. Compounding the issue is the fact that there are fewer banks willing to lend money to shipyards for financing than there were before the shipping crisis.
"If German shipyards cannot finance orders, those orders are lost," Ploß said. The decision to include shipbuilding in the program will help shipyards secure contracts.
Guarantees secured up to 80 percent
The Federal Ministry for Economic Affairs and the Federal Ministry of Finance decided to include the shipping industry in the so-called Large-Scale Guarantee Program. Shipyards can apply if they require a guarantee of at least 20 million euros.
The federal government and the participating federal states secure up to 80 percent of a guarantee. This also means they must step in if, for example, a shipyard is unable to repay borrowed money to a bank.
In the past, the Large-Scale Guarantee Program was limited to companies in structurally weak regions, but it was later expanded. State politicians and industry representatives had campaigned for years to have shipbuilding included in the program.
Ploß tours Northern Germany
Ploß is currently on a tour of the north focusing on security policy. In Hamburg, Ploß visited the Blohm+Voss shipyard, which now belongs to the defense contractor Rheinmetall. Further visits are planned through Friday, including stops in Kiel, Cuxhaven, and Wilhelmshaven./lkm/DP/stw
