News

Cash injection

Taiwan supports shipowners

by Port News Editorial Staff

The Government of Taiwan has decided to allocate public money to help the shipping industry. According to recent international media reports, a $1 billion package to support shipowners hit by Coronavirus would be ready. Beneficiaries of the scheme include the two flag companies Evergreen and Yang Ming.

Yesterday the top management of the two companies met with the Minister of Transport and Communications to discuss the plan. Taiwan has apparently promised 80% guarantees for loans granted plus other forms of subsidies. The subsidies should allow companies in the sector to access bank financing without too much difficulty.

The two national carriers commented with satisfaction on the news of economic aid for the sector, considering the cash injection essential for strengthening their financial situation. Evergreen and Yang Ming closed the first quarter with a net loss of $15 million and $27 million, respectively.

Translation by Giles Foster