loan exposure modest
NORDIC banking group Nordea says it
has only a “modest” loan exposure to the hard-hit dry bulk and
container shipping segments.
The dry-bulk market has been hit
especially hard in the global financial crisis, with rates
plummeting after a sharp slowdown in demand and a near halt in
access to loans for carriers.
The Baltic Dry index, which tracks
the development in freight rates, has dropped more than 90% to 804
points, from an all-time high in May this year of 11,793 points.
Nordea said it currently saw a
slight improvement in the dry-bulk market, with some more shipments
“Nordea has a modest exposure to
the container ship and dry-bulk market,” Carl Steen, head of
Nordea’s shipping and offshore unit, said at a shipping seminar in
“Nordea has a very diversified
exposure against all segments within the shipping and offshore
industry,” he said.
Steen said exposure to container
shippers amounted to 2.2% and exposure to dry-bulk shipping 11.8% of
the division’s total lending.
Nordea also said although values in
the container shipping segment had not dropped as much as in the
dry-bulk business, the group expected those values to continue
Nordea, the fourth largest lender
to the shipping and offshore industries, in terms of credit
exposure, said its shipping and offshore loan books constituted 3%
and 1.2%, respectively, of its total lending.
It said its shipping borrowers were
mainly large, transparent and, primarily, listed companies with
“strong ownership and professional management.”
“We consider our credit portfolio
to be in a healthy condition,” Steen said. — Reuters
“Many of the segments we finance,
such as tankers and offshore, continue to enjoy satisfactory
earnings,” he added. — Reuters