ANNOUNCEMENT 26 Mar 2010In March 2010, 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 Credit for Bulk Carrier Export to Singapore
Available at: http://www.jbic.go.jp/en/information/press/press-2009/0326-7160
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
On 26 March 2010, the Japan Bank for International Corporation (JBIC) signed a maximum JPY 4.29 billion (ca. USD 46 million) buyer's credit agreement with Singaporean Tata NYK Shipping Pte. Ltd. The company is a joint venture between Japanese Nippon Yusen Kabushiki Kaisha and Indian TATA Steel Limited. The loan will finance the Singaporean company's purchase of a 60,600-dwt bulk carrier from Japanese Sumitomo Corporation. The bulk carrier will be built by Japanese Oshima Shipbuilding Co., Ltd.
In this context JBIC stated: "JBIC will actively support the export of ships built by domestic shipyards, as they play a major role in the regional economy by creating employment and bolstering the local supporting industries, as well as Japanese firms' global shipping business, through cofinancing with private financial institutions."
JBIC signed a similar buyer's credit agreement with TATA NYK in July of the same year, see related measure.
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.