ANNOUNCEMENT 22 Oct 2009In October 2009, the government of Japan announced a change in financial export support.
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The Japan Bank for International Cooperation press release: JBIC Signs Loan Agreement with Export-Import Bank of Malaysia Berhad to Support Trade Finance
Available at: http://www.jbic.go.jp/en/information/press/press-2009/1026-7201
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
JBIC press release on the Sydney Consensus: http://www.jbic.go.jp/en/information/press/press-2008/1030-7126
On 22 October 2009, the Japan Bank for International Cooperation (JBIC) signed an export loan agreement totalling a maximum USD 100 million with Export-Import Bank of Malaysia Berhad to support trade finance transactions. The export loan is part of the underling pledge of the Sydney Consensus and Japan's new 2009 policy to expand its support of trade transactions. In this context JBIC stated:'JBIC will continue to implement steadily measures under this initiative to support trade finance.'
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.
The Sydney Consensus
The Sydney Consensus was signed on 30 October 2008 between eight Export-Import Banks in Asia (Asian Eximbanks) at the 14th annual Asian EXIM Banks Forum. More specifically the Asian Eximbanks agreed to mutually cooperate by supporting projects and transactions through loans and guarantees. In this context JBIC stated in a press release that: 'As the turmoil in the financial markets is now spreading globally, the member institutions agreed in the Sydney Consensus to cooperate in preparing for any difficulties that may arise in implementing projects and transactions in which they participate by providing loans and guarantees.' More information on the Sydney Consensus can be found on JBIC's website.
JBIC provides direct loans to overseas importers or export credit lines to foreign banks. Loans or credit lines 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.