ANNOUNCEMENT 11 Dec 2014In December 2014, the government of Japan announced new support for the overseas expansion of domestic firms.
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The Japan Bank for International Cooperation press release: Loan for Manufacturing and Sales of Automobile Parts in China . Available at: http://www.jbic.go.jp/en/information/press/press-2014/1211-34549
JBIC information concerning overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 11 December 2014 the Japan Bank for International Cooperation (JBIC) signed a CNY 90 million (ca. USD 14.19 million) overseas investment loan agreement with Hiruta (Foshan) Automotive Company, Ltd. The company is a subsidiary of Japanese Hiruta Kogyo Co., Ltd. The loan supports the manufacturing of automobile parts including chassis, transmissions and engine related parts.
In this context the Bank stated: 'Thus, this loan will contribute to the maintenance and improvement of the international competitiveness of Japanese industries, through supporting Hiruta Kogyo's overseas business deployment.'
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment 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.