AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The loan agreement between JBIC and the State Bank of India for setting up an export credit line was signed on 2 September 2014 and has an approximate maximum value of JPY 8.1 billion (USD 77 million) and USD 12 million.
Additionally, the loan is co-financed by a Japanese private financial institution amounting to an approximate value of JPY 13.5 billion (USD 128.44 million) and USD 21 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion.
Through the State Bank of India, this export credit line finances the procurement of steam turbine generator equipment from the Japanese company Toshiba Corporation and its subsidiary in India Toshiba JSW Power Systems Private Limited for Indian Meja Urja Nigam Private Limited's construction of a coal-fired power plant in India.
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 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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