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On 25 November 2013 the Export-Import Bank (Eximbank) of Korea announced signing a loan agreement with Canadian Teekay amounting to USD 307 million. The loan consists of a USD 177 million Direct Loan and a USD 130 million Comprehensive Guarantee.
The loan finances the Canadian company's purchase from Korean Samsung Heavy. Industries. In this context Teekay signed a USD 757 million Floating Production Storage and Offloading unit exporting deal with the Korean company.
In this context the Bank stated: 'The Bank plans to expand its ship finance activities in order to help Korean shipbuilders win more contracts for high value-added ships.'
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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