Harald Kuznik, Head of Shiping Division of HSH Nordbank, warns that banks[ds_preview] will not be able to provide enough new ships’ funding when the market has picked up again. They will still have to deal with bad debts from this crisis, he said. This may result in lack of funding in new projects when volumes resume and requirements for ships will rise. In the forthcoming year there won’t be sufficient equity available and shipowners will find it difficult to finance project as banks have to deal with problematic prevailing orders. Mr. Kuznik forecasts a change of paradigm and even prosperous projects might no be feasible of support owing to the banks’ own losses in 2009 and red figures still anticipated in 2010. HSH Nordbank will move very carefull with new commitments, he concluded. The bank, together with Commerzbank and 10 other banks, recently rescued HCI Capital from collapsing provided no guarantees would be called in prior to 2013. Despite of the bad news Mr. Kuznik emphasised a great deal of the banks portfolio still performs well and renegotiating charter rates does not necessarily mean the end for a KG fund. Payback of bank loans has been agreed to also allow lower income. Unemployed vessels will only be granted help if fund’s investors are participating.
