Moscow has approved RUB1.5bn (US$51m) in loan guarantees for Russia's Far East Shipping Co (Fesco).
Moscow has approved RUB1.5bn (US$51m) in loan guarantees for Russia's Far East Shipping Co (Fesco). Analysts said the group has been severely affected by the downturn in container shipping, with revenues for 2009 set to be less than half of 2008's. But according its CEO, Sergey Generalov, in a recent interview with HK Shipping Gazette sister publication, The Container Shipping Manager, Fesco has increased its market share at the expense of rivals, and has been cushioned by terminal operations earnings.
The guarantee, approved by deputy economic development minister Oleg Saveliev, will be the first company in the industry to receive state guarantees to this amount. The company is going to raise the credit totalling RUB2.5 billion from VTB which will be spent on debt servicing.