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Switzerland boosts financial guarantee for merchant navy |
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09:59, June 28, 2007 |
The Swiss government wants to make sure the country's merchant navy stays afloat and has decided to further boost its financial guarantee, the official Swissinfo website reported on Wednesday.
According to the Swiss cabinet, it plans to increase the creditline for the country's merchant navy from the current level of 600million Swiss francs (about 4.9 million U.S. dollars) to 1.1 billion Swiss francs (about 890 million U.S. dollars).
The credit increase, if approved by parliament, will ensure that vital supplies would still make their way into the country ifa major crisis broke out, the cabinet said on Wednesday.
Landlocked Switzerland has had a fleet since the Second World War. At that time, Switzerland could not find enough neutral shipsto bring in cereals, coal and other vital commodities from North and South America to Mediterranean ports.
Currently, 32 merchant ships fly under the Swiss flag -- 27 bulk carriers and five tankers. They are operated by six Swiss shipping companies and can transport up to 900,000 tons.
The sector's current credit line was approved by parliament in 2002, and was to run for 10 years. The new credit line will now have a life span of 15 years.
According to the Swiss cabinet, more time and money are needed to ensure the modernization and development of the national fleet.The rising cost of shipping was one reason given for the extra credit.
The extra credit line, say the authorities, will encourage ship-owners to acquire at least two special tankers, which can transport mineral oil and other fluids.
Additional funding would also be used to persuade owners to register their vessels in Switzerland.
Source: Xinhua
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