AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreement between JBIC and African Kite Shipping Co., Ltd incorporated in the Bahamas has a maximum value of USD 12.3 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to USD 24.6 million. The governmental agency Nippon Export and Investment Insurance will provide an Export Credit Insurance for the co-financed portion. African Kite Shipping Co., Ltd is a subsidiary of International Strategic Shipping Investments B.V. which is, in turn, a joint venture company MUR Shipping Holdings B.V. and J.P. Morgan Global Maritime Investment Fund L.P. The loan finances the purchase of a bulk carrier from Japanese ITOCHU Corporation and built by Japanese Imabari Shipbuilding Co., Ltd to MUR Shipping Holdings B.V. in the Netherlands.
In this context, the JBIC stated that: "The loan is intended to support the export of ships built in a Japanese shipyard ... Thus, the loan will contribute 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 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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