ECB probes banks' risky shipping loans
Central bank may ask banks to raise more capital in its audit review
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[HAMBURG] Reederei Heinrich, a 149-year-old German shipping company, risks losing two of its three vessels unless it repays loans as financial stress in the industry spreads to banks facing a European Central Bank review.
The company, established near Hamburg, Germany's biggest port, has endured misfortunes such as the death of a family member struck by anchor chains and ships that ran aground. Now general manager Jens Robrahn says he's concerned that HSH Nordbank AG may call in 22 million euros (S$38 million) of outstanding debt and seize two boats acting as security.
"I currently get 4,000 euros a day for a vessel, which covers operational costs and interest payments, but I don't have the money to pay back the loan," Mr Robrahn, 73, a ship captain, said in his office in Jork, 25 km west of Hamburg. Smaller container vessels like his Anna Sirkka and Page Akia need to repay about 1 million euros in debt a year, he said. Mr Robrahn and HSH Nordbank, the world's largest maritime lender, declined to provide further details.
Share with us your feedback on BT's products and services
