IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: No inception date

Financial assistance in foreign market

On 26 February 2013, the Japan Bank for International Cooperation (JBIC) set up the new facility to support the overseas business development of the Japanese firms. This move is guided by Article 3.II.3 of the "Emergency Economic Measures for The Revitalization of the Japanese Economy" (published on 11 January 2013).
 
According to the Article 3.2.3 of the plan, the overseas business development and expansion of Japanese firms will be "actively supported" by the Japan Bank for International Cooperation. For this purpose, the JIBC has also received an additional JPY 69 billion (USD 560 million) from the budget of the federal government of Japan.
 
According to JBIC, the loan will cover maximun 70% of the overseasactivity costs of Japanese SMEs. The interest rate should not exceedLibor 6 months + 35bp, or EURIBOR 6 months + 18.75bp. For the JapaneseYen based loan, the floor rate is 0.25% with individual agreements.
 
On 24 June 2014, the Japanese Government revised their "EmergencyEconomic Measures for The Revitalization of the Japanese Economy" tofurther support the overseas business development of the Japanese SMEsthrough the Japan Bank for International Coorperation (JBIC) - a fullygovernment owned and funded financial institution.

Based on the announcement, four main projects will be strenghtened to support the Japanese SMEs by means of favourable loan conditions and subsidies through JBIC:

  • Ensure the resource and energy development or import
  • Support the overseas M&A activities
  • Expand the credit line to leverage the support from private investors
  • Support business and production activities of overseas Japanese SMEs

 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 

AFFECTED COUNTRIES

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