AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 24 October 2014 the Japan Bank for International Cooperation (JBIC) signed three buyers credit agreements with the Government of Turkmenistan respectively amounting up to JPY 22.4 billion (ca. USD 186.82 million), USD 392 million and EUR 102 million (ca. USD 115.39 million). The loans finance Turkmenistan's state-owned gas company Turkmengaz's purchase of plant facilities from Japanese Kawasaki Heavy Industries, Ltd. among others in connection with the construction of a gas to gasoline plant.
In this context the Bank stated: 'thus JBIC's support through these loans will help create business opportunities for Japanese companies in the oil and gas sector of Turkmenistan, thereby contributing to maintaining and strengthening the international competitiveness of Japanese 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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