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2nd Fiscal 2014 Loans of Working Capital Total ¥10.9 BillionSupporting the Shipbuilding Industry
The Nippon Foundation has created a program for providing long-term, low-interest loans to promote shipbuilding and related industries, for capital investment needed to upgrade equipment at shipyards and plants, and for working capital needed for sales, processing, and the purchasing of materials. Applications for the 2nd round of fiscal 2014 loans providing working capital for shipbuilding-related businesses were accepted from October 2 to October 10, and the amounts of the loans to be extended have been finalized.
Although some companies have experienced growth in orders, lower order amounts have meant that the trend of a weaker yen has not translated to higher sales and profit at many companies, and demand for working capital has been weak.
Details
2nd round of loans for working capital in fiscal 2014: ¥10,916.5 million
(a 11.5% decrease compared with the ¥12,337.5 million for the 2nd round of fiscal 2013)
The Nippon Foundation’s Shipbuilding Loan Program
| Types of loans | Capital investment: Funds required for shipyard berths, equipment (including docks, plants, machinery, and ships), and purchases of land to be used in shipbuilding operations. Working capital: Funds needed for purchases of materials, sales, processing, manufacturing, and other expenses. |
|---|---|
| Tenor of loans | Capital investment: Up to 15 years Working capital: Up to 5 years |
| Interest rate | In principle, 2.2% or lower (fixed rate) |
| Eligible borrowers | Shipbuilders and companies in related industries, marine transport companies, marina operators, etc. |
| Maximum loan amounts | Capital investment: ¥2 billion Working capital: ¥500 million |
| Scheduled disbursement date | December 9, 2014 |
Contact
Public Relations Section, Communications Department
The Nippon Foundation
