AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer's credit agreement between WALLSTRAITS SHIPPING PTE. LTD. and JBIC has a value of USD 55 million. The loan finances the Singaporean company's purchase of a 6,500 car capacity carrier. The carrier will be built by Japanese Mitsubishi Heavy Industries, Ltd.
In this context, JBIC stated: "This loan will support the export of a ship built in a Japanese shipyard amid the credit squeeze caused by the financial crisis, which has made it difficult to structure ship finance across the world, thereby contributing to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry."
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.
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