Constanta Shipyard borrows 9m euros

Constanta Shipyard is to borrow 375bn ROL (9.3 million euros) from Eximbank to fund the construction of a ship. The shipyard plans to mortgage a plot of land and a building, both of which are located in Constanta, in order to take out the loan. Eximbank will hold a pledge without dispossession on the new ship until the works on the vessel are completed. The shipyard will request Eximbank to issue letters of guarantee for the money that is to be repaid in four instalments by the owners of the ship, Moonbeam Navigation Inc. The four instalments are worth some 5.2 million euros. Romanian shipbuilders began to receive an increasing number of orders last year, and all shipyards in the country are now working at full capacity. However, while shipyards were getting more orders, they were faced with the problem of securing funding for the new projects. As business volume grows, funding the acquisition of raw materials is a key-element in supporting this growth, especially since sheet steel, the main raw material, almost doubled in price last year. ZF