China Allows Shipbuilders to Use Vessels Under Construction as Mortgage

BEIJING, June 26 -- Chinese shipbuilders are now able to collateralize ships still undergoing construction for loans, according to a document unveiled by the Marine Affairs Bureau of the Ministry of Transport.

    The document, governing registration of mortgaged ships under construction, clears a path for ship owners to finance using unfinished vessels, said an expert from China Association of National Shipbuilding Industry.

    As a follow-up for the shipbuilding industry booster plan, the move will help relieve the financing difficulties faced by shipyards, he added.

    The document defines the concept of boats under construction and lays down requirements for the mortgager (ship owner) and the mortgagee (money lender).

    (Source: chinamining.org)