AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The two buyer's credit agreements between JBIC and Danish Ultrabulk Shipping A/S was signed on 1 October 2014 and has a total maximum value of USD 18.6 million.
Additionally, the loan is co-financed by a private financial institution amounting to an approximate value of USD 37.3 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion.
The loan finances the purchase of two bulk carriers, built by Japanese Oshima Shipbuilding Co., Ltd., from Japanese Sumitomo Corporation.
In this context, JBIC stated: "These loans are intended to support the export of ships built by Japanese shipbuilders which perform a significant role in the regional economy and associated industries, including mid-tier enterprises and small and medium-sized enterprises (SMEs). Thus, these loans will contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry."
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.e 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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