AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Sumitomo Rubber (Thailand) Co., Ltd has a maximum value of 2.4 billion Thai Bhat (USD 76.58 million). The company is a Thai subsidiary of the Japanese company Sumitomo Rubber Industries, Ltd.
The loan finances the Thai subsidiary's manufacturing business of automobile tyres and agricultural equipment in Thailand through the establishment of a new tyre factory as well as expanding the existing factories' production facilities.
In this context, the Bank stated: "This loan will support the overseas business deployment of these Japanese companies, and correspond to one of the priority issues in supporting the enhancement of the international competitiveness of Japanese companies' "strategic use of the finance functions in local currencies"of the "Financial Strategy" in the "Rebirth of Japan: A Comprehensive Strategy"decided by the Japanese Cabinet on July 31, 2012."
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.
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