The banks have tightened credit for the smaller shipping companies' general operations so much that several are threatened by bankruptcy.
Following the financial crisis, the banks have tightened credit for the smaller shipping companies' general operations so much that several are threatened by bankruptcy. Six smaller Danish shipping companies have already had to put down the shutters. "The crisis has already cost fire small and two larger shipping companies their life. It is especially a problem that the government bank packages do not reach beyond the counter to the bank customers. The banks are adopting a very restrictive credit policy, through which they also have tightened the operation credits, which never previously have caused problems for the small shipping companies", says secretariat manager Michael Wengel-Nielsen of the Shipowners' Association of Small Ships to Ritzau.
The Shipowners' Association of Small Ships has together with the Shipowners' Association of 1895 had meeting with the two largest banks of the country, Nordea and Danske Bank, but without positive results. The banks have according to the shipping companies no faith in the small companies ability to produce profits."We have tried to explain the situation of the shipping companies, but we have not received much understanding. The banks suggest that the companies should merge and use the benefits of large-scale operations", says Michael Wengel-Nielsen to the bureau.
The secretariat manager understands that some shipping companies might be in a situation, in which the banks see no possibility of helping them, if the overdraft keeps growing. But he does not understand the tightening of the operation credit.
The two associations consist of 180 ships combined.