AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 28 May 2010, the Japan Bank for International Cooperation (JBIC) signed an USD 160 million overseas investment loan agreement with Canadian Similco Finance Ltd. The Japanese company Mitsubishi Materials Corporation (Mitsubishi) has an equity stake in the Canadian company.
The loan will finance the Similco Copper Mountain Project in Canada. In this project Mitsubishi and the Canadian company Copper Mountain Mining Corporation will restart the the Similco copper mine in British Colombia, Canada and commence production of copper concentrate.
In this context the Bank stated: 'By providing this loan, JBIC aims to help Japanese firms secure a long-term and stable supply of resources that are essential for Japanese firms.'
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment 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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