German shipbuilders face order cancellations of EUR 936 million in 2009

According to the German Economy Ministry, German shipbuilders face order cancellations worth as much as EUR 936 million in 2009, in 2008 the shipbuilders received cancellations worth EUR 730 million, Bloomberg reports.
The cancellations are due to the global downturn, overcapacity in the shipping industry and problems to secure financing for vessel projects. In November the Chancellor Angela Merkel and the government launched an economic stimulus program enabling shipbuilders to get guarantees for up to 90 percent of the financing. Despite this, the shipbuilders struggle to get loans.

Source: http://www.shipgaz.com