AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The three buyer's credit agreements between JBIC and Singaporean U-Ming Marine Transport (Singapore) Private Limited has a total value of USD 40.5 million. Additionally, the loan is cofinanced by a private financial institution amounting to an approximate value of USD 81.1 million. The governmental agency Nippon Export and Investment Insurance will provide insurance for the cofinanced portion. The Singaporean company is a subsidiary of U-Ming Marine Transport Corporation in Chinese Taipei.
The buyer's credit agreements will finance the Singaporean subsidiary's purchase of three bulk carriers from Japanese Sumitomo Corporation, built by Japanese Oshima Shipbuilding Company Limited.
In this context, the Bank stated: "Amid continued constraints to structure ship financing across the world, these loans will provide financial support for the export of ships built in Japanese shipyards, thereby contributing to maintaining and improving the international competitiveness of the Japanese shipbuilding industry."
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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