Japan’s commercial banks are now increasing lending to shipbuilding firms. The move is in line with the government’s policy to prioritize support for the sector as part of economic security measures.
Sumitomo Mitsui Trust Bank plans to strengthen its finance to shipbuilders by taking as collateral new vessels and revenues from transportation fees.
President Oyama Kazuya said: “We see that Japanese shipbuilding and shipping industries are still internationally competitive. We’d like to firmly back it with financial power.”
The bank aims to boost its outstanding loans to shipbuilders by 30 percent to 2 trillion yen, or about 12.8 billion dollars, by 2030.
Regional banks in western Japan like Iyo Bank and Hiroshima Bank are also expanding loans to the sector. They have set up offices in shipping hub Singapore to promote shipbuilding orders from local owners.
AloJapan.com