AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 30 March 2016, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement amounting to a maximum USD 65.8 million with the state-owned development bank of Angola Banco de Desenvolvimento de Angola (BDA). Additionally, the Japanese Sumitomo Mitsui Banking Corporation co-finances 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, through BDA, the Angolan company Angola Cables S.A.'s purchase of an optical submarine cable system from Japanese NEC Corporation, among others.
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.
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