German parliament delays Hapag-Lloyd decision
A German government committee delayed a decision on $1.8 billion of state-backed loan guarantees to ocean carrier Hapag-Lloyd due Sept. 30, to address questions raised by lawmakers.
The budget committee of the Bundestag, the lower house of parliament, is required to give an opinion on the government aid package for Germany's biggest ocean carrier which has already been cleared by the economic ministry's steering committee.
The budget committee cannot block the decision of the steering committee that Hapag-Lloyd has met all the conditions for government aid but it would be unusual for the latter not to address any concerns expressed by the Berlin lawmakers.
Parliamentary officials said the budget committee likely will reach a decision by the end of the week.
Hapag-Lloyd requested the loan guarantees in mid-August to finance a restructuring that has already involved its owners pledging a $1.3 billion capital injection.
The German container line expects to post a loss of about $1.3 billion this year and as much as $730 million in 2010, Frankfurter Allgemeine Zeitung reported on Sept. 16, without saying where it got the information.
The budget committee of the Bundestag, the lower house of parliament, is required to give an opinion on the government aid package for Germany's biggest ocean carrier which has already been cleared by the economic ministry's steering committee.
The budget committee cannot block the decision of the steering committee that Hapag-Lloyd has met all the conditions for government aid but it would be unusual for the latter not to address any concerns expressed by the Berlin lawmakers.
Parliamentary officials said the budget committee likely will reach a decision by the end of the week.
Hapag-Lloyd requested the loan guarantees in mid-August to finance a restructuring that has already involved its owners pledging a $1.3 billion capital injection.
The German container line expects to post a loss of about $1.3 billion this year and as much as $730 million in 2010, Frankfurter Allgemeine Zeitung reported on Sept. 16, without saying where it got the information.