IMPLEMENTATION LEVEL

National

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: 29 Jun 2017 | Removal date: open ended
Still in force

Trade finance

The loan agreement extended by JBIC to Tanzanian company Vehicle and Equipment Leasing (Tanzania) Limited through Eastern and Southern African Trade and Development Bank has a total value of USD 3.6 million. Additionally, the loan is co-financed by Sumitomo Mitsui Banking Corporation amounting to an approximate value of USD 7.3 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion. The loan is granted through the already agreed export credit line, see related measure. The loan finances the Tanzanian company's purchase of construction machinery from Japanese Komatsu Ltd.

In this context, the JBIC stated: "As Japan's policy-based financial institution, JBIC will continue to financially support the exports of machinery and equipment and the overseas business deployment of Japanese companies in the Sub-Saharan African countries which are under the coverage of TDB's (ed. Eastern and Southern African Trade and Development Bank) finance."

Export credit lines
JBIC provides direct loans to overseas importers or export credit lines to foreign banks. Loans or credit lines are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank here to 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

442 Machine-tools & parts
8457 Machining centres, unit construction machines (single station) and multistation transfer machines, for working metal.
845710 Machining centres
845720 Unit construction machines (single station)
845730 Multistation transfer machines

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