AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer's credit agreement between JBIC and State Bank for Foreign Economic Affairs of Turkmenistan was signed on 17 October 2014 and has a total maximum value of USD 696 million.
Additionally, the loan is co-financed by a number of private financial institutions amounting to an approximate value of USD 1.16 billion. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion.
The loan finances the purchase of chemical fertiliser plant facilities by the state-owned petrochemical company Turkmenhimiya from Japanese Mitsubishi Corporation, among others. The facilities will be used in connection with the construction of a chemical fertiliser production plant in Turkmenistan.
In this context, JBIC stated: "... JBIC's support with this loan for the export of a chemical fertilizer plant by a Japanese company will lead to creating business opportunities for Japanese companies in this sector in Turkmenistan, thereby contributing 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.
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