AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 22 March 2010, the Japan Bank for International Corporation (JBIC) signed a maximum USD 57 million export loan agreement with the Korea Development Bank (KDB). Through KDB, the loan will finance the Panamanian subsidiary of Korean SK Shipping Co., Ltd.'s purchase of two Japanese built 55,800-dwt bulk carriers from Japanese Sumitomo Corporation
In this context JBIC stated: '...this loan, which provides financing through KDB, will lead to supporting exports by Japanese firms and thereby contribute to maintaining and improving the international competitiveness of Japanese shipbuilders.'
Notably JBIC and KDB signed in September 2009 an agreement to expand trade activities between the two countries. See related measure. The JBIC press release does however not state if this measure is directly related.
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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