AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreement between JBIC and Indonesian PT. Telekomunikasi Indonesia Tbk has a maximum value of USD 18.81 million. The loan finances the Indonesian company's financial contribution in the project, which will install an international submarine cable system. The the submarine optical fibre cable and related communication machinery and equipment purchased for the project will be manufactured by Japanese NEC Corporation and other Japanese companies.
In this context, the Bank stated: "JBIC will continue to support Japanese companies' overseas business deployment and export of Japanese infrastructure system to Indonesia and its neighboring countries, by drawing on its various financial facilities and schemes for structuring projects, and by 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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