AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 25 June 2014, the German Eximbank KfW announced it would provide a credit worth 100 million USD for key replacement investments to the Iron Ore Company of Canada, one of Europe's biggest suppliers for iron ore concentrate and pellets.
The KfW press release on this transaction cited one of its Management Board members: "The transaction serves to secure the supply of raw materials in Germany and Europe, thus fulfilling one of our core tasks." The article then goes on to explain that "IOC's raw ore is upgraded to produce high-quality iron ore concentrate and pellets, which makes the supplies suitable for further processing in high-technology production areas - the specialty field of many German and other European companies. Europe is one of the main buyers of iron ore material."
The credit at hand may thus be interpreted as an "import credit", as it aims to ensure imports of iron ore concentrate and pellets from Canada. The affected trading partners are thus based on those countries exporting the goods at hand to Germany.
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