AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 15 November 2010, the Japan Bank for International Cooperation (JBIC) signed a JPY 14.6 billion (approx. USD 176 million) untied loan agreement with the Government of the State of Săo Paulo. Moreover, JBIC provides a partial guarantee for an additional co-financed portion granted by a number of private Japanese banks.
The loan finances phase two of the Săo Paulo Metro Line 4 Extension Project undertaken by the Government of the State of Săo Paulo. A number of Japanese companies are participating the metro operation area of this project.
In this context JBIC stated: 'Upon successful completion of the Project, the resulting increase in passengers will help stabilize operation of the metro, and also improve the international competitiveness of Japanese firms in the rail transport sector.'
Untied loans either finance projects with a specific global purpose or if they promote Japanese businesses. As such, untied loans for example finance projects aiming at bettering the 'global environment' or 'sustaining and expanding trade and direct investment from Japan'. More information can be found on the Bank's website under Untied 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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