AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer's credit agreement between Wilhelmsen Lines Shipowning Malta, a company incorporated in Malta and JBIC has a value of USD 27 million. The governmental agency Nippon Export and Import Insurance (NEXI) provides a Buyer’s Credit Insurance for a cofinanced portion of approximately USD 55 million provided by Japanese banks Sumitomo Mitsui Banking Corporation and The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The loan finances the Maltese company's purchase of a pure car/truck carrier built by Japanese Mitsubishi Heavy Industries, Ltd.
In this context, JBIC stated: "Amid this situation, this loan will provide financial support for the export of ships built in Japanese shipyards, thereby contributing to maintaining and improving the international competitiveness of Japanese shipbuilding industry. JBIC is now empowered to extend financing for ship exports to developed countries, as in this case, pursuant to the Japan Bank for International Cooperation Act promulgated and entered into force on May 2 this year and related government orders."
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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