AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreement between JBIC and the Indonesian state-owned company PT PLN (Persero) (PLN) has a maximum value of JPY 10.1 billion (USD 90.72 million) and USD 53 million. Additionally, the loan is cofinanced by a number of private financial institutions amounting to a maximum JPY 16.9 billion (USD 151.79 million) and USD 89 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the cofinanced portion.
The loan finances the Indonesian company's purchase of facilities from Japanese companies for the construction of a Kalselteng 2 coal-fired power plant. Such facilities include boilers and steam turbine power generators from a number of Japanese companies.
In this context, the Bank stated: "Through JBIC's support for the export of power generation equipment by Japanese companies, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries..."
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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