AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 23 October 2009, the Japan Bank for International Cooperation (JBIC) signed an export loan agreement totalling a maximum USD 100 million and a Memorandum of Understanding (MoU) both with Indonesia Eximbank. The USD 100 million export credit line is intended to support trade transactions. The MoU focuses on the operational cooperation between the two institutions and promoting projects that Japanese companies are involved in. The loan and MoU are both part of the underling pledge of the Sydney Consensus.
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.
The Sydney Consensus
The Sydney Consensus was signed on 30 October 2008 between eight Export-Import Banks in Asia (Asian Eximbanks) at the 14th annual Asian EXIM Banks Forum. More specifically the Asian Eximbanks agreed to mutually cooperate by supporting projects and transactions through loans and guarantees. In this context JBIC stated in a press release that: 'As the turmoil in the financial markets is now spreading globally, the member institutions agreed in the Sydney Consensus to cooperate in preparing for any difficulties that may arise in implementing projects and transactions in which they participate by providing loans and guarantees.' More information can be found on the Sydney Consensus on JBIC's website.
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.
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