AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The export credit line extended by JBIC to Indian Reliance Industries Limited has a maximum value of USD 300 million. Additionally, the loan is co-financed by a number of private financial institution amounting to a maximum value of USD 220 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the cofinanced portion.
The export credit line finances the Indian company's purchase of various goods and services from Japanese companies in connection with its expansion project of a number of oil refining and petrochemical plants.
In this context, JBIC stated: "JBIC will continue to support the export of machinery and equipment to India by Japanese companies, including mid-tier enterprises and SMEs, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function."
Export credit lines
JBIC provides direct loans to overseas importers or export credit lines to foreign entities. Loans or credit lines 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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