IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 03 Jul 2014 | Removal date: open ended
Still in force

Trade finance

On 3 July 2014 an agreement was signed between the Export-Import Bank's (Eximbank) of Korea and China to jointly grant economic support of USD 295 million to Chinese Minsheng Financial Leasing (MSFL) in the procurement of Korean built vessels. Specifically, the MSFL has ordered three 18,400 TEU container vessels from the Korean company Daewoo Shipbuilding & Marine Engineering (DSME) to be delivered by the second half of 2015.
 
The EximBank Korea will finance the deal, whilst the Eximbank of China will guarantee 50% of the loan to MSFL. The joint action is an outcome of the Reciprocal Risk Participation Agreement between the two banks established in 2013 (see related measure).
 
Korea Export-Import Bank to this end stated: 'While MSFL was weighing the merits of awarding the contract to a Korean shipyard, the two export credit agencies moved swiftly to finalize their financial cooperation plan on this deal and expressed their intent to co-finance it, decisively tilting MSFL's calculus in favor of DSME.'
 
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 COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods

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