AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 26 March 2010, the Japan Bank for International Corporation (JBIC) signed a buyer's credit agreement with Indonesian PT. Telekomunikasi Indonesia, Tbk (TELKOM) totalling approximately USD 60 million. The loan will finance the company's installation of a high-capacity submarine optic-fiber cable system around Kalimantan, Indonesia. The company was approved for this loan as it supports Japanese exports. In connection with the project, TELKOM will import telecommunication machinery and equipment from Japanese Fujitsu Limited.
In this context JBIC stated: '...JBIC intends to strengthen support for the business development including the expansion of export opportunity of Japanese firms in infrastructure projects through a variety of financial functions including corporate risk-taking operations for local firms similar to those applied to this loan."
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.
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