ANNOUNCEMENT 21 Nov 2014In November 2014, the government of Japan announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release: Buyer's Credits for Export of Ships to Oldendorff in Germany. Available at: http://www.jbic.go.jp/en/information/press/press-2014/1121-32538
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
On 21 November 2014 the Japan Bank for International Cooperation (JBIC) signed two buyer's credit agreements totalling around USD 21.5 million with German Oldendorff Carriers GmbH & Co. KG. The loans fund the company's purchase of two 60,000 DWT bulk carriers to be built by Japan Marine United Corporation.
In this context the Bank stated: 'Thus, the loans will contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry'.
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.