Global Trade Alert

On 25 September 2015 the Japan Bank for International Corporation (JBIC) signed an overseas investment loan and guarantee agreement of USD 50 million with Taiwanese Hotai Finance Co., Ltd. The agreement funds the company's sales financing business of Japanese automobile brands Toyota and Lexus in Taiwan. A number of Japanese banks will co-finance the loan with an additional USD 50 million, which JBIC will partially guarantee.
In this context the Bank stated: 'This loan will financially support the overseas business deployment of such Japanese automobile manufactures, and thereby contribute to improving and strengthening the international competitiveness of the Japanese automobile industry by supporting the automobile sales financing business.'
 
Overseas investment loans
JBIC provides such direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment loans.

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.

According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.