AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer's credit agreement between Barzan Gas Company Limited and JBIC has a value of USD 600 million. Additionally, the governmental agency Nippon Export and Import Insurance (NEXI) provides a Buyer’s Credit Insurance for the cofinanced portion of approximately USD 600 million provided by a number of Japanese private financial institutions.
The loan partially finances the Qatari company's gas extraction and sales project for the construction of a natural gas treatment facilities, which the Japanese company JGC Corporation was awarded the contract for.
In this context, JBIC specifies that "With this loan, JBIC will support the export of Japanese plants and equipment." and further stated "JBIC will continue to support the export of Japanese firms’ machinery and equipment for overseas plants and the expansion of Japanese overseas business operations by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function."
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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