Deutsche Bank intends to sell part from the loans of shipping companies in amount of more than 1 billion USD, raising attention of ECB to the problematic maritime sector in the economy. The largest bank in Germany aims to sell part of the debt, but will not completely leave the shipping finance market, as the total volume of credits issued by Deutsche Bank to the shipping companies, is estimated at 5-6 billion USD. Currently the maritime industry is suffering from low freight rates, overcapacity and significant slowdown in global economic growth, which put the sector under pressure from large debt and low liquidity.
The segment of bulk and container shipping, as well as offshore oil sector, are suffering from serious problems and large crisis. Germany was one of the global centers of shipping finance in the period before the financial crisis of 2008, as the creditor countries still hold in their portfolios loans to 80 billion EUR. In addition to Deutsche Bank put up for sale shipping loans to banks HSH Nordbank, NordLB and Royal Bank of Scotland.
Last month, European Central Bank started credit analysis to the banks of maritime sector. Lenders are worried that the regulator may require them to increase reserves for these loans.