Ship fi­nance.

Kathimerini English - - Business & Finance -

Pri­vate equity com­pa­nies may help fill a fore­cast $30 bil­lion short­fall in fund­ing for the ship­ping in­dus­try over the next three years as banks re­strain lend­ing, two fi­nanciers said. Banks have about $50 bil­lion a year to lend, while ship­ping firms need $60 bil­lion for new or used ves­sels, Paul Packard, head of mar­itime in­dus­tries at Bank of Ire­land Plc, said at a con­fer­ence in Lon­don. Ves­sel own­ers have al­ready been “trekking to New York” to talk to pri­vate in­vestors, said Peter S. Shaerf, a man­ag­ing di­rec­tor at AMA Cap­i­tal Part­ners, which runs ship­ping funds and ad­vises on debt and equity. The world eco­nomic cri­sis, which be­gan with the col­lapse of US real es­tate in 2007, trig­gered more than $2 tril­lion of write-downs and credit losses at fi­nan­cial in­sti­tu­tions, curb­ing their abil­ity to lend to busi­nesses. It also caused a ship­ping slump, with re­turns for own­ers of su­per­tankers plung­ing more than 90 per­cent since the mid­dle of 2008 and se­cond­hand prices for the car­ri­ers, each big­ger than the Chrysler Build­ing, drop­ping about 49 per­cent over the pe­riod. “There’s a sense in the com­ing six to nine months it’s time to buy as­sets,” Shaerf said at the con­fer­ence. “We are see­ing a lot of peo­ple now more than just cir­cling the wag­ons, they’re load­ing up their ar­rows.” (Bloomberg)

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