AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 31 May 2011, the Japan Bank for International Cooperation (JBIC) signed three buyer's credit loan agreements with ship owning companies incorporated in Marshall Islands. The companies are all owned by Greek Safe Bulkers, Inc. The loans amount to approximately USD 39 million, USD 45 million and USD 38 million respectively. The loans finance the companies' purchase of Japanese built ships.
In this context JBIC stated: 'These are the first buyer's credits for ship exports extended to a Greek ship owner with the aim of supporting the export of ships built in Japanese shipyards, thereby contributing to maintaining and strengthening the international competitiveness of Japanese shipbuilders. '
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.
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.
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