WISTA
Forum for financial crisis and its impacts on shipping industry
- The situation is not expected to improve in 2009
- An increase of the insurance premiums will be in effect

DEC, 18.2008
 

Elias Tsakiris, Peggy Papastavrou,Jenny Pournara, Anna-Maria Monogioudi,
Angelos Papoulias, Vera Alexandropoulou, Anna Kalathaki

A view of the Forum
 

The current topic “The Credit Crunch and its Impact on Greek Shipping” was presented during the Annual Forum of the Women’s International Shipping and Trading Association - WISTA Hellas, hold at the Yacht Club of Greece.

The moderator of the forum, Angelos Papoulias, Director of Investments & Finance Ltd, analyzed how the gradual transformation of the international financial system, with the liberalization of the banking sector and the abolition of the segregation between commercial and investment banks, coupled with the low interest rate policy in the USA, led to the collapse of the sub prime market.

Specially added, that “the write offs - sales of assets from the banks that followed, made government intervention inevitable, resulting even in the nationalization of financial institutions.

• Mr. Papoulias stated: “The developments were swift, as the lack of debt in a capital intensive sector accelerates the decline. The situation is not expected to improve in 2009, since the banks enter the recession with weak balance sheets”.

The impact on shipping, a sector hit at the start of the recession, was massive: Collapse of the freight market; reduction in vessels’ values; decline of S&P activity and cancellations of NB contracts”.

• SPEECHES

- According to Anna Polemis, Financial Director of Remi Maritime Corporation, the Credit Crunch had a great impact on the Finance Industry having created lack of credit for even the smallest of transactions.The Greek Shipping is largely affected as it depends on Financing to a great extent, in order to expand and modernize its fleets.

- Ilias Tsakiris, Managing Director of Hellenic Hull Management (HMA) Limited (underwriters of 850 ships controlled by Cypriot and Greek interests), mentioned that despite the fact that the credit crunch crisis consequences cannot be accurately predicted yet, it is certain that an increase of the insurance premiums will be in effect, thus influencing the operating costs. About piracy stated that the Somali pirates, who claimed amounts in the region of USD 150m this year, involving both Ship-owners and their Insurers in lengthy and costly adventures, are additional negative parameters for the ships operations.

- Mrs. Anna Kalathakis, Senior Vice President – Legal Risk Management - Navios Maritime Holdings Inc., presented her views on the Conference issues from the perspective of a listed shipping company.

- Peggy Papastavrou, Legal Adviser of the Hellenic Exchanges S.A, responsible for shipping listings, gave the alternative fund-raising solution to the ship-owners through placements at stock markets and she described the revised Athens Exchange regulations that allow direct listing of any offshore shipping company, irrespective of size, maritime activity, number of vessels, flag, on any ATHEX Market Segment.

• Rodi Kratsa Tsagaropoulou, Vice-President of the European Parliament in her message, assured of her efforts to motivate the Commission to undertake initiatives to overcome the crisis and John Joannos, Secretary General of the Ministry of Mercantile Marine, the Aegean and Island Policy, addressing the audience, made a brief reference to the issues concerning the shipping crisis and assured of the Government’s continuous interest to the shipping industry.