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ANNOUNCEMENT 11 Sep 2015
In September 2015, the government of Japan announced a change in financial export support.NUMBER OF INTERVENTIONS
1
SOURCE
The Japan Bank for International Cooperation press release: Buyer's Credit for Government of the Republic of Uganda
Available at: http://www.jbic.go.jp/en/information/press/press-2015/1222-45194
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
On 11 September 2015 the Japan Bank for International Cooperation (JBIC) signed a buyer's credit agreement totaling around JPY 7.5 billion (USD ca. 63.67 million) with the government of the Republic of Uganda. An additional loan is provided by a private bank, which the government agency Nippon Export and Investment Insurance is insuring.
The loan funds Uganda's purchase of Japanese machinery for road construction as well as vehicles used for transporting such construction materials.
In this context the Bank stated: "this loan will contribute to the improvement of Uganda's transportation infrastructure as well as maintaining and strengthening the international competitiveness of Japanese industries through supporting the export of the machinery and vehicles for road construction.'
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.