AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 4 March 2011, the Japan Bank for International Cooperation (JBIC) signed a general export credit line agreement with Turkish Turkiye Is Bankasi A.S. amounting to JPY 22 billion (approx. USD 267 million).
Following this agreement, JBIC signed a number of loan agreements with the Turkish Bank on 8 March 2011. These loans will finance a Turkish shipping company's purchase of two 55,800-dwt bulk carriers from Japanese Marubeni Corporation.
JBIC has previously approved a credit line to Turkiye Is Bankasi A.S. in December 2009. This credit line later facilitated the export of three Japanese built bulk carriers to Turkey. Additionally, JBIC also signed a similar loan agreement with the Turkish commercial bank Yapi ve Kredi Bankasi A.S. in September 2010 to facilitate the export of a Japanese built bulk carrier. See related measures.
In this context the Bank stated: 'This loan follows these previous loans for facilitating Japanese ship exports. JBIC will continue to actively support the export of ships built in Japanese shipyards that perform a significant role in the regional economy, including employment creation and business dealings with associated industries, by drawing on its existing network of local banks and others in developing countries.'
Export credit lines
JBIC provides direct loans to overseas importers or export credit lines to foreign banks. Loans or credit lines 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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