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 200 million untied loan agreement with Malaysian Banking Berhad (Maybank). The loan provides funds for local supporting industries through Maybank Group's network. The loan thereby supports Japanese overseas business activities in Malaysia and ASEAN.
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.'
JBIC provided a similar loan for Maybank in May 2009, see related measure.
Untied loans either finance projects with a specific global purpose and/or promote Japanese businesses. As such, untied loans may actively finance projects aimed 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.
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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