Singapore: Yesterday’s ship finance session at Singapore’s Sea Asia conference saw bankers come in for plenty of attacks.
Coco Vroon of Vroon B.V. called on banks to stop supporting what he called “weak companies” and for a rationalisation among shipping banks.
He said the problem banks had was they refused to accept losses and "take their medicine". This had led to an oversupply and low rates prevalent in the market now with bad companies being kept afloat, which had depressed the market, he said.
In defence of banks, BNP Paribas Asia head of shipping and offshore finance Arnold Wu said the lending institutions were “naturally averse” to foreclosures on ships because they were much harder to do. Unlike in the housing market, foreclosing on a ship was "a painful and difficult exercise", he said. [11/04/13]
