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: 01 Dec 2011 | Removal date: open ended
Still in force

Financial assistance in foreign market

The overseas investment loan agreement between JBIC and TENIGAL has a value of USD 120 million. The company is a Mexican joint venture between the Japanese Nippon Steel Corporation (NSC) and TERNIUM S.A., incorporated in Luxembourg. Additionally, a number of Japanese banks signed loan agreements with TENIGAL at a total value of USD 200 million. JBIC here additionally provided a loan guarantee for this co-financed portion.

The loan finances the joint venture's project of manufacturing and selling hot-dip galvanised and galvannealed steel sheets. In this context, JBIC stated: "This loan will support NSC’s overseas business strategy and ultimately serve to maintain and improve the international competitiveness of the Japanese steel industry."

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 COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

412 Products of iron or steel
7210 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, clad, plated or coated.
721030 Electrolytically plated or coated with zinc
721041 Corrugated
721049 Other
721070 Painted, varnished or coated with plastics
721090 Other
7212 Flatrolled products of iron or nonalloy steel, of a width of less than 600 mm, clad, plated or coated.
721220 Electrolytically plated or coated with zinc
721230 Otherwise plated or coated with zinc
7225 Flatrolled products of other alloy steel, of a width of 600 mm or more.
722592 Otherwise plated or coated with zinc

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