ANNOUNCEMENT 24 Nov 2010In November 2010, the government of Japan announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 25 November 2010: JBIC's First Buyer's Credit to Angola: http://www.jbic.go.jp/en/information/press/press-2010/1125-7284
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
On 24 November 2010, the Japan Bank for International Cooperation (JBIC) signed a JPY 19.3 billion (approx. USD 231.44 million) buyer's credit agreement with the Government of the Republic of Angola.
As part of the government's textile plant rehabilitation project, this loan will finance the purchase of a textile production facility from Japanese Marubeni Corporation. Hereunder, the Japanese companies Toyota Industries Corporation and Murata Machinery will manufacture textile machinery and equipment to be utilized for this part of the project.
In this context JBIC stated in a press release: 'This project marks the first step for the recovery of the Angolan textile industry, and is expected to lead to increased business opportunities for Japanese firms exporting textile machinery and equipment, which will play an essential part in the development of the industry by the Angolan government over the coming years. '
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.
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.