AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 29 March 2010, the Japan Bank for International Cooperation (JBIC) announced signing a USD 300 million untied loan agreement with Malaysian CIMB Bank Berhad. The loan provides funds for local supporting industries in connection with Japanese companies operating in Malaysia and the ASEAN region in general.
In this context JBIC stated that this loan will support: '... Japanese affiliates operating in the ASEAN region to build more advanced supply chains, to improve the quality of local goods and to reduce their production costs. This will contribute to strengthen the international competitiveness of Japanese industries.'
On the same day JBIC also signed a Memorandum of Understanding (MoU) with PT Bank CIMB Niagra Tbk in Indonesia, CIMB Thai Bank Company Limited in Thailand and CIMB Bank Berhad in Malaysia. The three banks are all part of the Malaysian CIMB Bank Group. The MoU establishes an agreement between JBIC and the three banks on the above loan's affective financing and coordination.
Potentially Tied Loans
The loans in question either finance projects with a specific global purpose or if they promote Japanese businesses. As such, untied loans for example finance projects aiming at bettering the 'global environment' or 'sustaining and expanding trade and direct investment from Japan'. More information can be found on the Bank's website under Untied Loans.
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