AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The export loan agreement between JBIC and Turkish Yapı Kredi Bankasi A.S. has a total maximum value of USD 16.7 million. This loan is granted under the general agreement of export credit line signed in November 2012, see related state act. Additionally, the loan is co-financed by a private financial institution amounting to USD 27.8 million. The governmental agency Nippon Export and Investment Insurance will provide an Export Credit Insurance for the co-financed portion.
The loan finances Turkish Zorlu Jeotermal Enerji Elektrik Uretimi A.S., through the Turkish Yapı Kredi Bankasi A.S., purchase of machinery and equipment related to geothermal power generation from Japanese Toshiba Corporation.
In this context, JBIC stated: "... JBIC’s support of the export of machinery and equipment related to geothermal power plants through this loan will lead to the creation of export opportunities in the field of renewable energy sector in Turkey for Japanese companies. Thus, this loan contributes to maintaining and strengthening the international competitiveness of Japanese industries."
JBIC provides direct loans 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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