Financing grows for domestic shipping firms
The financing rate of Greek shipping companies continues to rise, with the total of loans issued by the end of 2005 reached $36.1 billion. This constitutes an 11.62 percent increase from 2004, when loans reached $32.35 billion. Since 2001 there has been an average annual loan increase of 21.6 percent, according to the latest report by Petrofin Bank, which records the data every year. Another significant conclusion from the 2005 report is the significantly stronger presence of foreign banks in the sector against the Greek ones, as the growth they show is greater than that of domestic banks. Over the course of last year, foreign banks with a physical presence in Greece grew at a rate of 40.2 percent and since 2001 at a rate of 177.1 percent. In contrast, Greek banks’ presence grew by just 2.82 percent last year and by 97 percent since 2001. The portfolio of foreign institutions with branches in the Greek market rose by $19.54 billion against $13.94 billion in 2004. The Greek banks’ portfolio reached $6.52 billion while foreign banks without a presence in this country accounted for $10 billion in loans. As a result the top five banks with the biggest presence in funding Greek shipping include foreign groups, led by the Royal Bank of Scotland, whose portfolio reached $8.1 billion, and HSH-Nordbank (which has no physical presence in the Greek market) at $3.46 billion. This is the first time HSH-Nordbank has risen to second spot, recording an annual increase of 22.28 percent in loans issued. Lying sixth overall, Alpha Bank is first among Greek banks with a portfolio of $1.48 billion, while the National Bank of Greece is eighth on the list with its portfolio reaching $1.14 billion. The third Greek bank on the list is Emporiki (with $938 million) followed by Piraeus Bank (with $897 million). As for 2006 and the further growth in funding for Greek shipping, the estimates of Petrofin are quite conservative. The reason for that is the reservations increasingly displayed by several banks regarding their exposure in the sector, given the high price of ships in relation to revenues. Another reason is the decline in the rate of orders for new ships by Greek shipowners. According to Petrofin the increase rate in loans issued will decline in the next two years, which is considered healthy for the sector as this is one of the very few with virtually no bad loans.
