• BIST 90.186
  • Altın 233,668
  • Dolar 6,1028
  • Euro 6,9689
  • İstanbul 24 °C
  • Ankara 17 °C

Yards may be forced out of market

Yards may be forced out of market
South Korea is promising to take a tough approach to failing shipbuilding companies.

South Korea is promising to take a tough approach to failing shipbuilding companies.

South Korea is promising to take a tough approach to failing shipbuilding companies, in a move which may force some yards out of the market early next year.

The nation"s financial watchdog plans to introduce more stringent banking guidelines in January in a bid, initially, to halt loan extensions to non-viable companies in the construction and shipbuilding industries.

Within shipbuilding, the Financial Supervisory Service said 26 small and medium-sized yards would come under scrutiny for restructuring.

In some cases, it is thought this could result in liquidation or the scaling down of operations.

The Financial Supervisory Service"s governor Kim Jong Chang issued a statement which indicated that distressed construction and shipbuilding companies, many hit hard by the economic slowdown, would be the priority for restructuring.

He noted that ?swift action on these companies was needed to pre-empt market uncertainty and boost investor confidence.?

A seven-member task force would come up with guidelines under which creditor banks will be able to assess the viability of businesses.

Those companies who receive the worst credit rating from banks would face ?restructuring,? Mr Kim said.

As a result, it is speculated that some construction and shipbuilding companies could be forced to leave the market as soon as next month.

Earlier in December, the Financial Supervisory Service had made it clear that the financial regulator would encourage creditors to accelerate the downsizing of ailing businesses.


This news is a total 407 time has been read
  • Comments 0
    UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
    Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
    Bu habere henüz yorum eklenmemiştir.
Other News
  • Havyard buyer bails11 March 2016 Friday 12:46
  • Havyard buyer nails10 March 2016 Thursday 15:02
  • Rolls-royce to supply LNG propulsion for fish food carrier09 March 2016 Wednesday 14:41
  • Step taken to build skilled workforce in shipbuilding19 January 2016 Tuesday 10:26
  • Canadian Shipyards May Lose Out on Navy Orders19 January 2016 Tuesday 10:21
  • Saga Cruises Confirms Cruise Ship Order at Meyer13 January 2016 Wednesday 10:22
  • Two more Sanmar tugs for Svitzer12 January 2016 Tuesday 11:14
  • ‘Living Stone’ keel laid12 January 2016 Tuesday 09:16
  • China builds second 'monster' ship11 January 2016 Monday 12:11
  • December defense contracts bring bounty to Ingalls Shipbuilding05 January 2016 Tuesday 11:37
  • All Rights Reserved © 2006 TURKISH MARITIME | İzinsiz ve kaynak gösterilmeden yayınlanamaz.
    Phone : 0090 212 293 75 48 | Fax : 0090 212 293 75 49 |