ANNOUNCEMENT 28 Oct 2015In October 2015, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea press release of 29 October 2015: EDCF Loan to Jordan Research-and-Training Reactor Construction Project: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=2&menuid=002001007&pagesize=10&boardtypeid=284&boardid=51767
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
On 28 October 2015, the Export-Import Bank (Eximbank) of Korea signed a USD 12.8 million EDCF loan agreement with the Government of Jordan. The loan funds the Jordan Research-and-Training Reactor Construction Project. The project is expected to promote Korean companies winning tenders for this project. In this context the Bank stated: 'With the support by the EDCF for this project, it is expected that the excellence of Korea's nuclear reactors will be demonstrated and it will, in turn, positively affect Korean companies to win the bids for subsequent contracts to this nuclear reactor project.'
The Economic Development Cooperation Fund (EDCF) loans
The EDCF provides low-interest and long-term loans 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.
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.