Changes to the Dutch subsidy scheme for new build vessels

Last week the Dutch Minister of Economic Affairs notified a few changes to the Dutch subsidy scheme for new build vessels. The Shipbuilding Loan Guarantee Scheme (Garantieregeling Scheepsnieuwbouwfinanciering), which came into force in March 2013, was the government’s answer to the difficulties experienced by the Dutch shipyards with regard to obtaining bank financing and bank guarantees for new build vessels. It allowed banks to apply for guarantee from the Dutch state up to 80% of the total building costs of the vessel, provided that the vessel was built within 3 years and the contract price did not amount more than Euro 100,000,000.

In consultation with the shipping sector and the Dutch banks, the guarantee scheme has been adjusted as follows:

• The cap of Euro 100,000,000 for the contract price has been removed from the guarantee scheme.
• The maximum term of the construction is extended from 3 to 4 years.
• The maximum amount guaranteed will be the lower of Euro 80,000,000 and 80% of the building costs of the vessel.

The rest of the scheme remains unchanged. The Dutch government anticipates more use of the guarantee scheme (than done until now) and the subsidy limit for 2016 is set at Euro 376,662,000.

A complete (Dutch) overview of the scheme is to be found here.