AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The Korean Eximbank's approval of loans and guarantees for the gas desulfurization plant (GDP) project in Turkmenistan has a total value of USD 245 million and USD 190 million respectively. The Korean companies LG International Corporation and Hyundai Engineering Corporation jointly participate in this project.
Contracts with the two Korean companies were originally signed in 2009. However, when the financial support for the project was withdrawn the project's future became uncertain. In this context, the Eximbank explained: "Turkmengas (ed. the project leader), in turn, requested financial support from Korea Eximbank to sustain the contract with the Korean firms. Korea Eximbank's expression of commitment to financial support over the course of a year was instrumental in enabling the Korean firms to carry out the GDP project as originally agreed."
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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