German NordLB sees more shipping loan writedowns through 2018
By: Reuters | Dec 02 2015 at 04:00 AM | International Trade
HANOVER, Germany - German regional state backed lender NordLB expects more big hits to the value of its 18 billion euro ($19.1 billion) portfolio of loans to the shipping industry over the next three years, its chief executive said.
“We have planned further substantial impairments in 2016, 2017 and 2018,” Gunter Dunkel told a press briefing late on Tuesday in remarks set for release on Wednesday.
However, the amount of cash NordLB must set aside to cover non-performing loans should decline over the period and even drop substantially in 2018, he said, adding that his bank was taking a more conservative tack than outside market researchers.
The shipping industry has been stuck in a multi-year slump brought about by global economic weakness and over-capacity in the sector, which has weighed not only on HSH but also Commerzbank and state development bank KFW, who were also active lenders.
($1 = 0.9418 euros)