AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer's credit agreement between JBIC and the Vietnam Oil and Gas Group (Petrovietnam) has an approximate total value of USD 85 million. Additionally, the loan is cofinanced by a number of private financial institution amounting to an approximate value of USD 141 million. The governmental agency Nippon Export and Investment Insurance will provide a Buyer's Credit Insurance for the cofinanced portion.
The buyer's credit agreement finances the purchase of steam turbines and related machinery and equipment from a consortium consisting of Sojitz Corporation and Korean Daelim Industrial Co., Ltd.
In this context, the Bank stated: "As a public institution, JBIC will continue to support the expansion of exports of Japanese companies to Vietnam as well as opportunities for Japanese companies to participate in the country's projects 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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