ANNOUNCEMENT 02 Apr 2014In April 2014, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
Export-Import Bank of Korea press release: Korea Eximbank Boosts Korean Ship Exports with Ship Bond Guarantee.
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=5&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16978
Guide to the Export-Import Bank of Korean
Available at: https://www.koreaexim.go.kr/site/inc/file/fileDownload?dirname=/doc/002&...
ExImBank official website: https://www.koreaexim.go.kr/site/main/index002
On 2 April 2014 the Export-Import Bank (Eximbank) of Korea provided USD 300 million (USD 175 million as a direct loan and USD 125 million in ship bond guarantees) in ship financing to Amercian Scorpio Tankers Inc. Through the agreement a total of 18 vessels will be ordered from Korean shipbuilders namely Hyundai Mipo Dockyard (10), Samho Heavy Industries (6), and Daewoo Shipbuilding & Marine Engineering (2).
In this context the Bank stated in a press release: 'The purpose of this financial agreement is for Korea Eximbank to finance Scorpio Tankers' purchase of product tanker vessels from three Korean shipbuilders including Hyundai Mipo Dockyard.' And added: 'A ship bond guarantee is an instrument by which Korea Eximbank guarantees the bond issued by a foreign ship-owners to finance its purchase of Korean-made vessels.'
The Eximbank of Korea operates with various financial instruments to promote its maritime sector. Loans and ship bond guarantees are provided to foreign buyers when financing their purchase of specific Korean maritime goods. More information on the Bank's financial instruments can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
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.