Spain's shipyards to receive over $640m in government financing through 2029

The Government of Spain, through the Ministry of Industry, has decided to extend an existing financial support program that would benefit the country's shipbuilding and ship repair industry.

The government has pledged to provide up to €559 million (US$644 million) to eligible shipyards through the program, which has now been extended to the end of 2029.

The Interior Ministry said the program would support the development of the country's shipbuilding and ship repair industry, "by providing greater certainty and stability for project planning processes."

The program was crafted to provide financial institutions with compensation of up to one percentage point to compensate for the difference between the loan interest rate and the benchmark commercial interest rate. These loans would then be issued to shipowners, shipyards, and third-party entities.

In 2024, the government provided a total of €41.14 million (US$47.4 million) in funding for the country’s shipbuilding industry as part of the program.

That same year, Spanish shipyards signed a total of 40 shipbuilding contracts with a total value of more than €1.5 billion (US$1.7 billion), regarded as one of the highest order volumes in more than a decade.

Local media said the government attributed this achievement to the implementation of the financing program.