EMEA News
Monjasa Boosts Credit Reserves
Danish bunker company Monjasa has beefed up its credit capacity by $160 million in preparation for the higher fuel prices post-IMO2020.
Four finance houses have been added to its roster of financial backers, the company said in a statement.
The extra financial support "confirms Monjasa as a robust business partner in 2020 and beyond", according to company group director for legal and treasury Rasmus Knudsen.
Monjasa's financial plan matches demand with "regionally dedicated trade finance banks", its head of finance, Roger Dekkers, said.
Regional banks "understand the local business context" which, in turn, shows "Monjasa as a safe port in challenging niche markets arkund the world".
The company has not released the names of the finance institutions nor its total credit facility for commercial reasons, it said.
With high sulfur fuel oil values falling and low sulfur fuel oil values rising, the appetite for credit from shipowners will increase. Players without sufficient credit behind them -- both buyers and sellers -- may find themselves falling behind in the bunker market from next year and the start of the 0.5% global sulfur cap on bunker fuel.
