“Export financing” for non-export shipbuilding

In its recent National Budget Proposal for 2018, the Government has proposed a NOK 10 billion state loan and guarantee program for the construction of vessels at Norwegian shipyards intended for use in Norway.

Norwegian exporters and their customers currently have access to state loans from Export Finance Norway and state guarantees from the Norwegian Export Credit Guarantee Agency (“GIEK”). The purpose is to support Norwegian export industry, and they have been particularly important as a source of financing for Norwegian yards building vessels for use outside Norway.

In order to support the Norwegian yards the Government has now ­proposed a new state loan and guarantee program for the construction of ships for use in Norway. The proposed program will have an initial duration of three years and a cap in 2018 of NOK 10 billion on guarantees. The program will be administered by Export Finance and GIEK. The Government’s proposal has been welcomed by all stakeholders, and it appears likely that it will make it into the Parliament’s final National Budget later this fall, at which point further details are likely to become available.