Germany’s Federal Ministry for Economic Affairs and Energy (BMWi) reported that Germany, along with other European countries, will allow cruise lines to pause their repayments of export credit guarantees for one year.
This decision was launched as the governments in Germany, Finland, France, Italy, and Norway want to prevent a loss of liquidity among cruise line companies, and also avoid a negative impact on European shipyards and their suppliers.
In reference to the agreement, Federal Government Maritime Coordinator Norbert Brackmann stated that
We are easing the pressure on cruise lines’ liquidity and thereby helping to stabilise the long-term business relations entertained by European shipyards during this crisis. There was an urgent need for this, given that the cruise business has been virtually paused by the coronavirus pandemic.
The Governments agreed on principles to follow that will enable cruise companies to postpone their repayments of debt that was backed by public-sector export guarantees for a year upon application. In Germany alone, some €25 billion worth of financing for cruise ships built in Germany is currently protected in this way.
The cruise industry has been already severely affected by the COVID-19 pandemic, with many cruise companies halting operations until further notice. Thus, in mid-March, the Cruise Lines International Association submitted a proposal to Vice President Michael Pence giving emphasis on preventing, detecting and caring during the coronavirus outbreak, including travel restriction to travelers of a certain age and those with chronic health issues.
Also, CLIA recently updated its measures against the disease. Specifically, the updated changes have already come into effect, in order to fight the negative impacts that coronavirus brings upon the human health and the cruise industry.
Concluding, BWMi informs that “Cruise line companies that wish to apply for a debt holiday can now turn to the relevant export credit agency via their ECA agents.”
