$823.4 Million Program For East German Yards Being Prepared By Bonn

A subsidy program worth around $823.4 million is being prepared by the Bonn government for the shipyards of eastern Germany.

Designed to cover existing orders, mainly from the Soviet Union, and fresh work, the program will extend over a period of up to four years.

Existing orders from western owners, however, will not be subsidized.

Eastern German yards would be given help of around $198,250,000 per year under the program, compared with similar programs for western German yards worth about $279,080,000 annually.

Eastern German yards would be granted straight newbuilding subsidies of 14.9 percent of the newbuilding price, as well as interest rate help of up to 2 percent on Deutschemark financing and 4 percent on foreign currency financing.

When ordering ships from eastern German yards, developing countries could get additional help under the program.

Newbuilding subsidies of at least 20 percent, however, are what the shipbuilding industry said it wants.

A special exemption from the EC Commission, which is restricting shipyard help to 14.9 percent, would be required for this.

The Bonn parliament's budget committee is discussing the scheme, which has been introduced both as part of the budget and the additional special program "Upturn East," for a revival of the eastern German economy.

Other stories from May 1991 issue


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