AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreements between JBIC and the Government of the Republic of Iraq has a maximum value of JPY 10.3 billion (USD 92.16 million) and USD 193 million respectively. The loan finances the Government of the Republic of Iraq's purchase of substation facilities from the Japanese company Toyota Tsusho Corporation. The Japanese companies TOSHIBA CORPORATION, which manufacture a 400/132kV substation equipment for 4 sites, and MEIDENSHA CORPORATION, which will manufacture 132/33kV mobile substation equipment for 12 sites. Notably, Toyota Tsusho Corporation assumes engineering, procurement and construction of this equipment.
In this context, the Bank stated: "JBIC will continue to support Japanese companies' export of infrastructure facilities, as well as their overseas business deployment, 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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