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On 2 September 2010, the Japan Bank for International Cooperation (JBIC) signed a JPY 7.9 billion (approx. USD 94 million) buyer's credit loan agreement with the National Authority for Tunnels (NAT) in Egypt.
The loan financec NAT's purchase of a fleet of rolling stock utilized for the construction of the Greater Cairo Metro Network's Line 3. The Japanese companies Kinki Sharyo Co., Ltd. and Toshiba Corporation will mainly produce the rolling stock, whilst Japanese Mitsubishi Corporation will be the direct supplier to NAT.
In this context the Bank stated: 'In the bidding for this project, a Japanese consortium competed with a European consortium for which a representative export credit agency offered favorable financing terms. However, after engaging in business negotiations, the Japanese consortium was awarded the order, with support from JBIC offering matching terms.'
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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