By Yasin Ebrahim
Cruise lines are desperate for a bailout from the government's $2 trillion stimulus package, but their decision to incorporate abroad, where taxes are cheaper, has muddied their chances of a rescue, CNBC reported.
"Cruise industry not confident it could borrow from any of the existing loan programs (because) of offshore registration. (Senior) admin official says bipartisan Senate group working to ensure they can access one of the facilities -- or else will seek a legislative fix in the next package," CNBC's Kayla Tausche said in a tweet.
The coronavirus stimulus bill has stipulated that a company must be “created or organized in the United States or under the laws of the United States” and “have significant operations in and a majority of its employees based in the United States,” according to CNBC.
Carnival (NYSE:CCL) was up 13%, but Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Lines (NYSE:NCLH) fell 5.3% and 4.7% respectively.
