IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 26 Mar 2010 | Removal date: open ended
Still in force

Trade finance

On 26 March 2010, the Japan Bank for International Corporation (JBIC) signed a maximum JPY 4.29 billion (ca. USD 46 million) buyer's credit agreement with Singaporean Tata NYK Shipping Pte. Ltd. The company is a joint venture between Japanese Nippon Yusen Kabushiki Kaisha and Indian TATA Steel Limited. The loan will finance the Singaporean company's purchase of a 60,600-dwt bulk carrier from Japanese Sumitomo Corporation. The bulk carrier will be built by Japanese Oshima Shipbuilding Co., Ltd.
 
In this context JBIC stated: "JBIC will actively support the export of ships built by domestic shipyards, as they play a major role in the regional economy by creating employment and bolstering the local supporting industries, as well as Japanese firms' global shipping business, through cofinancing with private financial institutions."
 
JBIC signed a similar buyer's credit agreement with TATA NYK in July of the same year, see related measure.
 
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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890130 Refrigerated vessels, other than those of subheading 8901.20
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods

Please report this page in case you detect an inaccuracy in its content.