AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 22 March 2011, the Japan Bank for International Cooperation (JBIC) signed a USD 120 million overseas investment loan agreement with Brazilian Usinas Siderúrgicas de Minas Gerais S.A. (USIMINAS). Additionally, Mizuho Corporate Bank, Ltd. will co-finance the loan with JBIC providing a guarantee for this co-financed portion. In this context the Brazilian company is Japanese Nippon Steel Corporation (NSC)'s equity method affiliate. The loan finances USIMINAS' new rolling mill for the existing heavy plate production facility located in Brazil.
In this context JBIC stated: 'This loan will support NSC's overseas business strategy, which will ultimately serve to maintain and enhance the international competitiveness of the Japanese steel industry.'
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment 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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