rbs starts winding down shipping business as sale efforts fade

LONDON (Reuters)-
Royal Bank of Scotland (RBS. L)
The company said on Tuesday that it had begun to gradually close its global shipping finance business, ending efforts to sell the business during the deteriorating downturn in the entire freight industry.
Chief executive Ross McEwan is working to complete the restructuring of the Bank of England, including asset sales and thousands of layoffs.
Make the profitable new business a difficult interest rate environment.
\"In line with the bank\'s strategy to create simpler, stronger and more sustainable banks to better meet the needs of UK and Western European customers, a Royal Bank of Scotland spokesperson said: \"We are starting to gradually close our shipping business. \".
\"We understand how difficult this is for our employees and we will provide support to those affected, including redeploying people to other positions as much as possible. ” RBS -
Has not been profitable since 2007 and was rescued by British taxpayers for the second year
In recent years, billions of pounds worth of assets have been sold, many of which are in a state of loss because it
The era of high-priced acquisitions under former chief executive Fred Goodwin.
Royal Bank of Scotland has been trying to sell its Greek shipping business worth about $3 billion, shipping sources told Reuters (2.
31 billion)
More than a year.
Bank and financial sources said on July that Credit Suisse (CSGN. S)
And investment (600036. SS)
Separate negotiations on possible purchases of Greek units have been withdrawn, in part due to the vote on Brexit and concerns about the lack of interest in the business.
Shipping sources said that in recent weeks, the Japanese financial services company Orix Corp (8591. T)
Royal Bank of Scotland and Sumitomo Mitsui Bank of Japan (SMBC)
Berenberg Bank of Germany is also interested in joining the Orix deal.
Orix, SMBC and Berenberg declined to comment.
The overall shipping risk of RBS is 6.
765 billion at the end of June
Royal Bank of Scotland figures show little change from the end of 2015.
Nearly £ 6 billion was managed by its \"bad bank\" Capital Resolution Group.
Royal Bank of Scotland had previously been a top lender in the global shipping industry, and its Greek office played a key role.
Not taking the sales path may mean that banks will not face any possible write-down of the value of the book shipping loan.
A source close to Royal Bank of Scotland told Reuters that the bank chose to relax fully with the offer of Greek business, which is the most prominent part of its shipping assets, does not match the value it wants.
According to sources, RBS believes that the orderly gradual reduction in the next few years before the loan expires will be the best choice for shareholders, rather than selling assets at a low price.
The bank is expected to cut 20 to 25 shipping posts, with about 10 people expected to stay to run the business, the source added.
Other sources said about 40 people were hired by Greek shipping companies.
As international trade slows, some shipping industries are experiencing the worst recession in history.
About 90% of world trade is transported by sea. “This (move by RBS)
Show how hard it is for banks to sell large portfolios at the price they want.
\"There is not enough interest in the amount of debt that hits the market,\" said a ship financing person . \".
\"The Royal Bank of Scotland has taken smart steps to do its best to limit the current losses.
Financiers told Reuters last week that German banks
Of the world\'s $400 billion outstanding debt,
As the global recession hit them hard, they are trying to get their loans back.
Eight years from the age of 45
Royal Bank of Scotland is still facing a series of legal and regulatory issues in the 2008-pound bailout plan.
Royal Bank of Scotland sold the aircraft rental business to two Japanese companies worth $7.
3 billion pounds in 2012, suffered a blow of 4 billion pounds in the sale of US Treasury bonds. S.
In last February, the bank closed investment banking operations in more than 20 countries as it scaled back its ambitions.