Washington, D. C. 20549

                        Report of Foreign Private Issuer
                      Pursuant to Rule 13a-16 or 15d-16 of
                       the Securities Exchange Act of 1934

                            For the month of May 2006

                               DIANA SHIPPING INC.
                 (Translation of registrant's name into English)

                               Diana Shipping Inc.
                                   Pendelis 16
                              175 64 Palaio Faliro
                                 Athens, Greece

                    (Address of principal executive offices)

     Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.

                  Form 20-F [X]               Form 40-F [_]

     Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                          Yes [_]          No [X]


     Attached to this Report on Form 6-K as Exhibit 1 is a copy of a press
release issued by Diana Shipping Inc. (the "Company") on May 24, 2006,
announcing that the Company has entered an agreement amending its $230.0 million
revolving credit facility with the Royal Bank of Scotland plc, to increase the
facility to $300.0 million.

                                        Corporate Contact:
                                        Ioannis Zafirakis
                                        Director and Vice-President
                                        Telephone: + 30-210-9470100
                                        Investor and Media Relations:
                                        Edward Nebb
                                        Euro RSCG Magnet
                                        Telephone: + 1-212-367-6848

                    DIANA SHIPPING INC. SIGNS A $300 MILLION
                             AMENDED CREDIT FACILITY
                       WITH THE ROYAL BANK OF SCOTLAND PLC

ATHENS,  GREECE,  May 24,  2006 - Diana  Shipping  Inc.  (NYSE:  DSX),  a global
shipping  transportation  company  specializing in dry bulk cargoes, has entered
into an agreement amending its $230.0 million revolving credit facility with the
Royal Bank of Scotland plc, to increase the facility amount to $300.0 million.

     The amended credit  facility has a term of ten years from May 24, 2006, the
new availability date, and the Company is permitted to borrow up to the facility
limit, provided that conditions to drawdown are satisfied and that borrowings do
not exceed 75% of the  aggregate  value of the mortgaged  vessels.  The facility
limit  will be $300.0  million  for a period of six years  (increased  from five
years)  from the  availability  date at which  time the  facility  limit will be
reduced by $15.0  million  (decreased  from $20.0  million)  to $285.0  million.
Thereafter,  the facility limit will be reduced by $15.0 million (increased from
$13.5 million)  semi-annually over a period of four years with a final reduction
of $180.0 million at the time of the last semi-annual reduction.

     Diana  Shipping  Chairman  and  Chief  Executive  Officer,  Simeon  Palios,
commented:  "We are  pleased to announce an amended  credit  facility  that will
enhance our  Company's  financial  flexibility,  provide  further  resources  to
support our future growth,  and provide savings in our finance costs compared to
the previous facility."

     The amended credit facility  contains various industry  standard  financial

     The amended  facility will bear interest at the rate of 0.75% to 0.85% over
LIBOR  (decreased  from 1% over  LIBOR),  depending  upon the amount  drawn as a
percentage of the value of the vessels. The Company will pay a commitment fee of
0.25% per annum (decreased from 0.35%) on the undrawn amount of the facility.

About the Company

     Diana  Shipping  Inc.  is a  global  provider  of  shipping  transportation
services.  The Company  specializes in transporting dry bulk cargoes,  including
such  commodities as iron ore, coal,  grain and other  materials along worldwide
shipping  routes.  Diana  Shipping Inc.  priced its initial  public  offering of
common stock on March 17, 2005.

Cautionary Statement Regarding Forward-Looking Statements

     Matters  discussed  in this press  release may  constitute  forward-looking
statements.  The Private Securities  Litigation Reform Act of 1995 provides safe
harbor  protections  for  forward-looking   statements  in  order  to  encourage
companies   to   provide   prospective   information   about   their   business.
Forward-looking  statements  include  statements  concerning plans,  objectives,
goals, strategies,  future events or performance, and underlying assumptions and
other statements, which are other than statements of historical facts.

     The Company desires to take advantage of the safe harbor  provisions of the
Private  Securities  Litigation  Reform  Act  of  1995  and  is  including  this
cautionary statement in connection with this safe harbor legislation.  The words
"believe," "except," "anticipate," "intends," "estimate," "forecast," "project,"
"plan,"  "potential,"  "will," "may,"  "should,"  "expect"  "pending and similar
expressions identify forward-looking statements.

     The forward-looking statements in this press release are based upon various
assumptions,  many of which  are  based,  in  turn,  upon  further  assumptions,
including  without  limitation,   our  management's  examination  of  historical
operating  trends,  data  contained in our records and other data available from
third parties.  Although we believe that these  assumptions were reasonable when
made,   because  these   assumptions  are  inherently   subject  to  significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control,  we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.

     In addition to these important  factors,  other important  factors that, in
our view,  could cause actual results to differ  materially from those discussed
in the  forward-looking  statements  include the strength of world economies and
currencies,  general market conditions,  including fluctuations in charter rates
and vessel values, changes in demand for dry bulk shipping capacity,  changes in
our operating expenses, including bunker prices, drydocking and insurance costs,
the market for our vessels,  availability of financing and refinancing,  changes
in   governmental   rules  and   regulations  or  actions  taken  by  regulatory
authorities,  potential  liability  from pending or future  litigation,  general
domestic  and  international  political  conditions,   potential  disruption  of
shipping  routes due to accidents or political  events,  vessels  breakdowns and
instances  of  off-hires  and other  factors.  Please see our  filings  with the
Securities and Exchange  Commission for a more complete  discussion of these and
other risks and uncertainties.

                                      # # #


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                               DIANA SHIPPING INC.

Dated:  May 24, 2006                        By:  /s/ Anastassis Margaronis
                                                     Anastassis Margaronis

SK 23159 0002 673178