RBS Looking to Offload its Entire $5 Billion Greek Ship Finance Portfolio

RBS is understood to have been one of the shipping industry's top lenders for a number of decades

Royal Bank of Scotland (RBS) is looking to sell off its entire $5 billion Greek ship finance business by the end of the year, Reuters reports.

"We won't be around for much more in Greece. RBS is slowly closing up operations here," an RBS source was quoted as saying.

"The shipping business is up for sale. They have decided to sell it, if there is a buyer by December."

The move is understood to be part of RBS' efforts to downsize its international business, but comes at a time of deep financial uncertainty for Greece.

The country is in the midst of financial crisis and until today's agreement on a third bailout for the country, was facing the real possibility of exiting the Euro.

RBS is understood to have been one of the shipping industry's top lenders for a number of decades, and its Greece office, with an estimated 60 staff, has played a key role as part of RBS' estimated $11 billion total global shipping portfolio.

The bank's remaining global shipping book, estimated at an additional $6 billion, is expected to be managed out of the UK.

"This is a sad time for the ship finance industry when one of the market leaders for decades will seemingly no longer be with us (in Greece)," a finance source said.

The move by RBS follows fellow British financial institution Lloyds Banking Group who exited the ship finance sector last April.

Its sale of a $500 million portfolio fetched about 80 percent of the loan value, according to sources.

Last week Ship & Bunker reported that Greece's financial woes caused up to a fifth of the country's shipping fleet to be stranded in domestic ports as capital controls prevented some shippers from buying bunkers.