Cancellations hit German shipyards

Up to 50 of 190 newbuilding orders at German shipyards may be cancelled due to the financial crisis, according to German media reports. The German shipyard association VSM claims that 25 orders worth EUR 600 million have already been cancelled. The German finance minister has now agreed that the shipbuilding industry may take part in the Government?s EUR 20 billion stimulus package. This means that the federal bank KfW can guarantee up to 90% of loans taken by yards in other banks.