AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 19 March 2010, the Japan Bank for International Corporation (JBIC) signed a JPY 45 billion (approx. USD 497 million) export loan agreement with the government of Turkmenistan. The loan will finance the Turkmen state-owned company Turkmenhimiya's purchase of machinery and equipment from the Japanese companies Sojitz Corporation and Kawasaki Plant Systems, Ltd. Such products will be utilized for the construction of an ammonia and urea fertilizer production plant
In this context the Bank stated: 'Such projects are expected to contribute to the development of the country's agriculture sector, while at the same time providing Japanese exporters of fertilizer production facilities with business opportunities.'
JBIC provides export loans to overseas importers or foreign banks. Such 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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