Western Marine Defaults Tk1,500 crore to 3 Banks

Industry: Logistics & Shipping, Shipping
Company: Western Marine Shipyard Limited
Company Intelligence Tag: Business Insights

Western Marine Shipyard is grappling with default loans totaling Tk 1,495.87 crore (around $175 million) to three banks. This includes Tk 505.90 crore owed to the Bank Asia Agrabad Branch and Tk 895.50 crore to the National Bank Agrabad Branch. Despite availing special facilities and government loan rescheduling options, the company has been unable to recover from its financial difficulties.

Bank and industry insiders attribute this to the slowdown in the global shipbuilding industry, with major shipbuilding nations like Japan, South Korea, China, Vietnam, and Singapore securing the lion’s share of large-scale shipbuilding orders. Consequently, medium-sized shipbuilding countries like Bangladesh face a lack of orders and delays in delivering ships. Western Marine’s inability to pay its dues has led to legal action by banks to collect outstanding loans. The shipyard is currently facing a challenging financial situation in the sector.

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