ANNOUNCEMENT 28 Mar 2015

In March 2015, 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



The Eximbank of Korean press release: EDCF to Lend USD 66 Million to Nicaraguan Sewage Disposal Projcet.
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?menuid=002001007&pagesize=10&boardtypeid=284&boardid=17014

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: 28 Mar 2015 | Removal date: open ended
Still in force

Trade finance

On 28 March 2015 the Export-Import Bank (Eximbank) of Korea signed a USD 66 million loan to fund the Nicaraguan government's Juigalpa Sewage Disposal Project in the the city of Juigalpa, Nicaragua. This loan is the second loan for the project. Through the loan Korean firms are expected to gain opportunities to tenders providing water supply and sewage systems to the city of Juigalpa.
 
In this context the bank stated: 'The two rounds of EDCF loans has paved the way for Korean companies to prove their technological mettle by constructing both the water supply and sewage systems for the same city, and will likely lead to expanded opportunities for Korean builders in the Latin American infrastructure market.'
 
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.