AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreement between JBIC and the Indonesian state-owned company PT PLN (Persero) (PLN) has a maximum value of JPY 9.2 billion (USD 80.15 million) and USD 22 million. Additionally, the loan is cofinanced by a number of private financial institutions amounting to a maximum JPY 15.4 billion (USD 134.17 million) and USD 37 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the cofinanced portion.
The loan finances the Indonesian company's purchase of certain power generation equipment, including gas and steam turbine from Japanese MITSUBISHI HITACHI POWER SYSTEMS, LTD as well as power generator from Japanese Mitsubishi Corporation and other entities.
In this context, the Bank stated: "Through JBIC's support for the export of power generation equipment by Japanese companies, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries, and, at the same time, it is expected to support Indonesia's economic development by realizing steady power supply."
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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