9. The third and fourth exceptions concerned support for research and development and for shipbuilding workers who have lost their jobs. R&D and new technologies are playing an increasingly important role in the shipbuilding industry, both in the development of high-performance vessels and in shipbuilding itself. Public support for R&D activities would therefore be generously eligible, but in descending order of intensity, the closer the activity is to the market. In addition, R&D in small and medium-medium-range shipyards and R&D in the field of safety and the environment could benefit from higher than “normal” rates. The social dimension of the agreement has been reflected in provisions that support workers who lose their jobs or retirements. Finally, the restructuring of shipyards under way in some countries (Korea, Belgium, Portugal and Spain) was able to continue as planned at the time of the conclusion of the agreement, but no new restructuring programme could be approved. PART III. FINANCING NEW SHIP CONSTRUCTION WITHOUT GUARANTEE INTRODUCTION Whether or not we are facing an international financial crisis, the line of credit is, as always, a valuable asset kept and appreciated by companies and businesses around the world, whether it is a billion-billion retail business or a new business. Shipyards and shipping companies are no exception to this rule. However, as has already been said, given the discrepancy between payment and delivery and the considerable amounts that flow from it, one of the most important elements of the shipbuilding transaction and its relevant financing is the bank money-back guarantee and bank payment guarantees that must be arranged by the buyer and the shipyard for the comfort and financial security of the other parties.
If the buyer does not guarantee a line of credit for a bank payment guarantee or if the shipyard does not guarantee a line of credit for the repayment guarantee, most shipbuilding operations cannot continue. On the other hand, when the buyer and the shipyard are closely related, or the buyer and the shipyard can prove to each other that they have and will continue to have significant financial capacity before the delivery of the ship, it is not uncommon, in some cases, for the buyer and the shipyard to agree: that no bank payment guarantee or bank refund guarantee is required. Even if it is economically reasonable between the buyer and the shipyard that no bank payment guarantee and no bank refund guarantee are required, in most cases the buyer`s financial banks would nevertheless require repayment guarantees from the shipyard`s bank on the basis of the results of their risk analysis and would then be transferred by the buyer in their favour as collateral. . . .