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: 17 Jul 2014 | Removal date: open ended
Still in force

Trade finance

The buyer's credit agreement between JBIC and Vietnam Electricity was signed on 17 July 2014 and has a maximum value of USD 202 million. Additionally, the loan is co-financed by a Japanese private financial institution amounting to an approximate value of USD 338 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion.

The loan finances Vietnam Electricity's procurement of a set of steam turbines and related equipment from a consortium of companies including Japanese Mitsubishi Corporation and Doosan Heavy Industries. The subject goods are produced by Japanse Toshiba Corporation.

In this context, JBIC stated: "Supporting the export of a set of steam turbines and related equipment with this loan is expected to contribute to maintaining and strengthening 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 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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840681 Of an output exceeding 40 MW
840690 Parts

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