AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 28 July 2010, the Japan Bank for International Cooperation (JBIC) signed a USD 47.4 million buyer's credit loan agreement with Singaporean TATA NYK SHIPPING Pte. Ltd. (TATA NYK). The company is a joint venture company between Japanese Nippon Yusen Kabushiki Kaisha and Indian TATA Steel Limited. The loan will finance the joint venture company's purchase of a 60,000-dwt bulk carrier from Japanese Sumitomo Corporation.
In this context the Bank stated: 'JBIC will actively support the export of ships built by domestic shipyards, as they play a major role in the regional economy by providing employment and bolstering local supporting industries, as well as Japanese firms' international shipping business, in cofinancing with private financial institutions.'
JBIC signed a similar buyer's credit agreement with TATA NYK in March 2010, 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.
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