AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 26 March 2015 the Japan Bank for International Cooperation (JBIC) signed a EUR 11.5 million (USD 13.15 million) buyer's credit loan agreement with Teyma Gestión de Contratos de Construcción e Ingeniería, S.A., a subsidiary of Spanish Abengoa S.A.
The loan funds the Company's purchase of equipment from Japanese Mitsui & Co. Plant Systems, Ltd for its construction of a seawater desalination plant in Agadir Morocco. This also includes the purchase of osmosis membrane elements and high-pressure pumps made by Japanese Toray. Industries, Inc. and Torishima Pump Mfg. Co., Ltd., respectively.
In this context the Bank stated: 'This loan provides financial support for the export of seawater desalination plant-related equipment to the Abengoa by MPS, thereby contributing to maintaining and strengthening the international competitiveness of Japanese water-related industries.'
Buyer's credit agreements
JBIC provides direct loans named buyer's credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to 'positively contribute to Japanese companies'. Further information can be found on the Bank's website under export 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.
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