AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 22 November 2010, the Japan Bank for International Cooperation (JBIC) announced signing an IDR 475 billion (approx. USD 53 million) guarantee agreement with the Jakarta Branch of a japanese firm, The Bank of Tokyo-Mitsubishi UFJ.
This Guarantee covers the Japanese commercial bank's loan to PT. Bussan Auto Finance (BAF), which the Japanese companies Mitsui & Co., Ltd. and Yamaha Motor Co., Ltd. have equity stakes in. This loan finances BAF's sales of Yamaha motorcycles in Indonesia.
In this context JBIC stated: 'through this transaction, JBIC aims to support local currency financing by a private financial institution, and thereby sustain stable development of the Indonesian motorcycle market, and finally to contribute to enabling the Japanese auto industry to develop a voluminous segment of an emerging economy.'
JBIC provides financial guarantees for loans extended by commercial banks to overseas Japanese companies among others. More information can be found on the Bank's website under Guarantees.
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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