ANNOUNCEMENT 27 Aug 2016
In August 2016, the government of Japan announced a new trade finance transaction.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 29 August 2016: Export Credit Line to PTA Bank: http://www.jbic.go.jp/en/information/press/press-2016/0829-50227
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
On 27 August 2016, the Japan Bank for International Cooperation (JBIC) signed a loan agreement with Eastern and Southern African Trade and Development Bank (PTA Bank). The loan agreement between JBIC and PTA bank is worth USD 40 million and establishes an export credit line. The loan is co-financed with Japanese Sumitomo Mitsui Banking Corporation with an additional USD 40 million with the Japanese government institution Nippon Export and Investment Insurance providing insurance for this portion. The export credit line will finance companies mainly in Sub-Saharan Africa, through PTA Bank, with funds for purchasing Japanese produced machinery and facilities.
In this context JBIC stated: "Given such circumstances, this credit line set up with PTA Bank, which has customers across 19 countries, will financially support Japanese companies' effort to expand exports to this region."
Export credit lines
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.
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.