AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer's credit agreement between JBIC and the Government of Turkmenistan has a total value of JPY 8.9 billion (USD 89.55 million). Additionally, the loan is cofinanced by a private financial institution amounting to an approximate amount of JPY 14.8 billion (USD148.91 million). The governmental agency Nippon Export and Investment Insurance will provide insurance for the cofinanced portion.
The buyer's credit agreements will finance state-owned Turkmenhimiya's purchase of a complete plant facility from amongst others Japanese Mitsui Engineering & Shipbuilding Co., Ltd. The complete plant facility will be utilised in the construction of a sulfuric acid production plant.
In this context, the Bank stated: "As a public financial institution, JBIC will continue to support Japanese companies for their export of plant machinery and equipment, 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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