Russian shipping companies will be able to conclude the leasing contracts for the construction of a new fleet on favorable terms with the state financial support only before the end of 2011, not in 2017 as it had been earlier announced, the correspondent of PortNews IAA reports quoting Denis Manturov, the deputy head of Russia’s Ministry of Industry and Trade.
Mr. Manturov who was speaking today during a round table ‘River Shipbuilding in Russia’ explained that reducing the time for conclusion of leasing contracts in the shipbuilding industry was caused by the need to "plan the state budget costs”. At the same time the deputy Minister announced the state would increase backing of the shipping companies: the Russ. Govt. will compensate up to 90% of interest-rate on a loan, versus the current 2/3. The leas contract term will be 7-10 years.
Mr. Manturov also noted that to date the leases quotas are "not very much in demand." He urged ship owners to actively seek the help of the state, adding that so far, the only company that had benefitted from the proposed by Russ. Govt. lease scheme was Volga Shipping Company.
As Volga Shipping Board’s Chairman Rishat Bagautdinov said "today an average company can not afford building a series of, say, 10 ships." He said that the Volga Shipping Company is a structure, part of a major transport holding company, and therefore was able to secure the bank guarantees for borrowed funds. Mr. Bagautdinov explained that the security for loan is approximately three times as much of the loan itself. He, therefore, suggested that the government actively use various mechanisms of the state guarantees, including the increase of credit period, granting the lease and loans not just for new building but for renovation of ships as well.