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: 29 Feb 2016 | Removal date: open ended
Still in force

Trade finance

On 29 February 2016 the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement amounting to JPY 18.5 billion (approx. USD 172.32 million) with the Bangladesh Power Development Board (BPDB). Additionally the commercial bank Tokyo-Mitsubishi UFJ, Ltd. will co-finance the buyer's credit loan with the Japanese governmental agency Nippon Export and Investment Insurance (NEXI) providing insurance for the co-financed portion.
The loan finances the BPDB's purchase of various facilities for the construction of a 400 MW gas-fired combined cycle power plant in Bangladesh. This includes the purchase of gas- and steam turbines from Japanese companies.
In this context JBIC stated: 'This loan is expected to support Bangladesh's economic development by realizing steady power supply, and, at the same time, will contribute to maintaining and strengthening the international competitiveness of Japanese industries.'
 
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 trading partners are identified based on UN Comtrade's import data from 2014. According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines. Thus, no affected trading partners have been identified.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840610 Turbines for marine propulsion
840681 Of an output exceeding 40 MW
840682 Of an output not exceeding 40 MW
840690 Parts
8411 Turbojets, turbopropellers and other gas turbines.
841111 Of a thrust not exceeding 25 kN
841112 Of a thrust exceeding 25 kN
841121 Of a power not exceeding 1,100 kW
841181 Of a power not exceeding 5,000 kW
841182 Of a power exceeding 5,000 kW
841191 Of turbojets or turbopropellers
841199 Other

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