Washington, D.C. 20549

                                    FORM 6-K

                OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2006

Commission File Number:  001-32458

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

                Pendelis 16, 175 64 Palaio Faliro, Athens, Greece
                     (Address of principal executive office)

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

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

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ___

Note:  Regulation  S-T Rule  101(b)(1) only permits the submission in paper of a
Form 6-K if submitted  solely to provide an attached  annual  report to security

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)7: ___

Note:  Regulation  S-T Rule  101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other  document that the registrant
foreign  private  issuer  must  furnish  and make  public  under the laws of the
jurisdiction  in which the  registrant  is  incorporated,  domiciled  or legally
organized  (the  registrant's  "home  country"),  or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press  release,  is not required to be and has
not been distributed to the registrant's  security holders, and, if discussing a
material  event,  has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.

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]

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):


Attached  to this  Report  on Form 6-K as  Exhibit 1 is a press  release  issued
today,  September  22, by Diana  Shipping Inc. (the  "Company")  announcing  the
establishment of a target level of semi-permanent debt and describing its effect
on the Company's dividend policy.

This  Report  on Form  6-K is  incorporated  by  reference  into  the  Company's
Registration Statement on Form F-3 (File No. 333-133410), as amended.

                                                                Exhibit 1

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


ATHENS,  Greece,  September  22, 2006 - Diana  Shipping Inc.  (NYSE:  DSX) today
announced that the Company's Board of Directors has determined that it is in the
best interest of its  shareholders to target a capital  structure  incorporating
$150 million of  semi-permanent  debt to support the Company's  long-term growth
plans. Accordingly,  beginning with the dividend in respect of the third quarter
of 2006,  dividends  per share will be  calculated  as if only debt in excess of
$150 million was refinanced  with equity issued at market value on the date such
dividend was declared.  Management expects this change to have a positive effect
on the dividend per share in respect of the third quarter and a more significant
positive impact  beginning with the dividend in respect of the fourth quarter of

Management currently anticipates that the Company will accumulate and maintain
approximately $150 million of semi-permanent debt by December 2006 as a result
of the $39.6 million of debt currently outstanding, the financing of the
recently announced acquisition of a capesize vessel for $91.0 million, and
additional debt incurred to finance future growth.

The  semi-permanent  debt will be incurred  initially under the Company's credit
line, which provides for no principal  amortization  until May 2012. The Company
expects that any  refinancing  of this debt would be funded with debt  similarly
requiring no  principal  amortization  until  maturity.  The Company  expects to
refinance  debt, if any,  incurred in excess of the $150 million  semi-permanent
amount by way of issuances of equity from time to time when the Company deems it
advantageous to do so.

The adjustment in the Company's dividend policy as a result of its incurrence of
the semi-permanent debt is expected to (i) increase the amount of available cash
from  operations  for  purposes of  calculation  of  dividends  by the amount of
interest expense incurred on the amount of debt exceeding the $150 million,  and
(ii)  increase  the  number  of shares  outstanding  in the  dividend  per share
calculation  to reflect  the  additional  shares that would have to be issued to
generate net proceeds  sufficient to repay the amount of debt exceeding the $150
million on the date of declaration.  Depending on the circumstances, the Company
may be required to use sources other than available cash from operations to fund
such dividends.

Debt incurred to finance  vessels under  construction  will not be considered in
determining  the  $150  million  semi-permanent  debt  amount  for  purposes  of
calculating  dividends per share, as interest on such debt is capitalized in the
cost of the vessels, and it is not anticipated that such debt will be refinanced
with equity before such vessels are delivered from the builder.

During  the  construction  period  of the  vessels  currently  on order  for the
Company, total debt, including debt to finance such vessels, is likely to exceed
$150  million.  Since the  construction  debt will not be taken into  account in
determining the level of the Company's  semi-permanent debt, dividends per share
will be  calculated  without  subtracting  interest on such vessel  construction
related debt from cash flow from operations and without assuming the issuance of
any equity to refinance such debt.

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:  September 22, 2006                  By:    /s/ Anastassis Margaronis
                                                   Anastassis Margaronis

SK 23159 0002 705864