Germany shipbuilder MV Werften is to receive a €193m ($228m) bridging loan to help complete a cruiseship for parent Genting Hong Kong.
The cash is coming from Germany's new Economic Stabilisation Fund, set up to help domestic companies during the Covid-19 pandemic.
The yard group said the money will help finish the 20,000-gt Crystal Endeavor for the Genting Group offshoot, and enable it to continue operations until March 2021.
MV Werften managing directors Peter Fetten and Carsten Haake praised the German initiative.
"We are very happy about this positive decision and the intermediate stage achieved with it, and thank all partners involved for their targeted commitment," said Haake.
"MV Werften and all employees appreciate the support from the state of Mecklenburg-Vorpommern and the federal government," added Fetten.
"All funds from the loan will be used exclusively in Germany for the shipyards."
The company is still in what it calls "lockdown mode" with the majority of the 3,000-strong workforce on short-time contracts.
Production to be ramped up
"After a phase of work preparation, production will gradually be ramped up in the coming weeks in compliance with strict hygiene rules," the shipbuilder has now said.
Genting Hong Kong has so far invested around €2bn in the group's Wismar, Rostock and Stralsund shipyards.
The shipowner's 204,000-gt Global Dream is due in January 2021 and the Crystal Endeavour comes in June of that year.
December 2022 should also see the 65,000-gt Crystal Diamond handed over.
So far, the Asian group has built 22 cruiseships in Germany.
Praise for Genting
Genting bought MV Werften in 2016 with the aim of producing its own ships because it was facing seven-year waits to get its hand on vessels at other yards, pre-Covid-19.
"[Genting Hong Kong] is a reliable partner, exemplary investor and trusts in the German management of MV Werften," said Fetten.
"We appreciate the significant investment, which is probably one of the largest in Germany, and which has enabled the creation of thousands of direct and indirect jobs for Germany and the EU."
Earlier this summer, German export finance lender KfW IPEX-Bank said it was in contact with Genting about possible solutions to its financial problems as cruiseship operations were halted in the pandemic.
Germany’s state-owned export credit provider structured €2.6bn in financing for two of the Malaysian company's newbuildings last year.
The KfW IPEX-led consortium providing the financing included BNP Paribas, Citibank, Credit Agricole, Credit Suisse and DNB.
