ANNOUNCEMENT 27 Mar 2015In March 2015, the government of Japan announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release: First Buyer's Credit for the Government of Tanzania. Available at: http://www.jbic.go.jp/en/information/press/press-2014/0330-37208
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
On 27 March 2015 the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement with the Government of United Republic of Tanzania. The loan finances the Government's purchase of machinery and equipment for a gas-fired combine cycle power plant. The plant will be constructed by the Japanese Sumitomo with gas turbines produced by Japanese Mitsubishi Hitachi Power Systems, Ltd.
In this context the Bank stated: 'This loan is expected to contribute to strengthening and maintaining the international competitiveness of Japanese companies through JBIC's support for the export of a whole set of machineries and equipment for a gas-fired combined cycle power plant, as well as contributing to the economic growth of Tanzania through stable supply of electricity.'
Buyer's credit agreements
JBIC provides direct loans named buyer's credit to overseas importers. Loans 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.
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.