AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 11 December 2015 the Japan Bank for International Cooperation (JBIC) signed a buyer's credit agreement totaling around USD 34 million with Icelandic Landsvirkjun (LV). An additional USD 34 million loan is co-financed by a number of private banks, which the government agendcy Nippon Export and Investment Insurance is insuring. The loan funds the company's purchase of equipment and machinery from Japanese Fuji Electric Co. Ltd., among others, for LV's construction of a geothermal power station.
In this context the Bank stated: '...this loan contributes to maintaining and strengthening the international competitiveness of Japanese industries in the renewable energy sector.'
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 in the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified
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