ANNOUNCEMENT 19 Mar 2014

In March 2014, the government of Republic of Korea announced a change in its trade finance instruments.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Export-Import Bank of Korea: EDCF Loan to Power Nicaragua's Renewable Energy Future
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=5&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16977

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


Inception date: 19 Mar 2014 | Removal date: open ended

Trade finance

On 19 March 2014 the Export-Import Bank (Eximbank) of Korea provided a USD 48 million loan under the Economic Development Cooperation Fund (EDCF) to finance Nicaragua's second stage of its renewable energy power transmission and transformation facilities project.
 
In this context the Bank stated: 'Korean contractors, who enjoy a definitive technological advantage in the construction of high-voltage transmission and transformation facilities, will design and build the second phase of this project as well. This is likely to broaden opportunities for Korean companies to take part in other power infrastructure and ODA (Offcial Development Assistance) projects in Latin America.'
Notably the ExImBank previously provided a USD 27.2 loan for the first stage of this project.
 
The Economic Development Cooperation Fund
The EDCF provides low-interest and long-term credit to developing countries for projects seeking to promote industrialization and economic stability. In some cases Korean companies are involved in such projects directly or through exports. More information on the Fund 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.

AFFECTED SECTORS