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ANNOUNCED AS TEMPORARYNo
On 4 March 2014 the Export-Import Bank (ExImBank) of Korea announced that it will provide USD 400 million in ship financing (a USD 220 million direct loan and a USD 180 million comprehensive guarantee) to the British offshore deepwater drilling company Seadrill. This ship financing agreement will facilitate Seadril's purchase of three drillships by Korean Samsung Heavy Industries worth USD 1.6 billion.
The financing agreement is the first to be concluded as a result of the bank's MOU with Seadrill signed in November 2013. The MOU, according to the Export-Import Bank, promises USD 1 billion in financing for Seadrill's purchases of Korean drilling platforms. See related measure.
The Eximbank of Korea operates with various financial instruments, including Direct Loans and Comprehensive Guarantees, to promote its maritime sector. Direct Loans are provided to foreign buyers when financing their purchase of specific Korean maritime goods, whilst a Comprehensive Guarantee is provided for ship buyer's repayments. More information on the Bank's financial instruments can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
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.
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