IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Dec 2013 | Removal date: open ended
Still in force

Trade finance

The buyer’s credit loan agreement between JBIC and the state-owned Saudi Electricity Company (SEC) has a maximum value of USD 183 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to USD 366 million. The governmental agency Nippon Export and Investment Insurance will provide an Export Credit Insurance for the co-financed portion. The loan finances the Saudi company's purchase of machinery and equipment for power generation from Japanese Mitsubishi Heavy Industries, Ltd, including steam turbines and boilers.

In this context, the JBIC stated that: "... support of the export of machinery and equipment for power generation by a Japanese company will thus increase business opportunities for other Japanese companies having high technological capabilities in this sector and contribute to the maintenance and improvement of 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 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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

423 Steam generators, (except central heating boilers) & parts
8402 Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); superheated water boilers.
840211 Watertube boilers with a steam production exceeding 45 t per hour
840212 Watertube boilers with a steam production not exceeding 45 t per hour
840219 Other vapour generating boilers, including hybrid boilers
840220 Superheated water boilers
840290 Parts
431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840681 Of an output exceeding 40 MW
840682 Of an output not exceeding 40 MW
840690 Parts

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