AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 27 April 2016, the Japan Bank for International Cooperation (JBIC) signed a USD 97.5 million overseas investment loan agreement with Vietnamese SEI Electronic Components (Vietnam) Ltd. (SEEV) The company is a Vietnamese subsidiary of Japanese Sumitomo Electric Industries, Ltd. (SEI).
The loan finances the expansion of the Vietnamese subsidiary's production capability for manufacturing and exporting electronic components to a number of Asian countries.
In this context the Bank stated: 'Through the loan to SEEV, JBIC intends to support SEI's business expansion in overseas countries and thereby contribute to maintaining and strengthening the international competitiveness of Japanese industries.'
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.
Affected trading partners are identified based on UN Comtrade's import data from 2014.
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