ANNOUNCEMENT 26 Apr 2011In April 2011, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
"Korea Eximbank Signs MOU with Saudi ARAMCO." Press release found at http://www.koreaexim.go.kr
On 26 April 2011 the Korean Eximbank signed a memorandum of understanding with Saudi ARAMCO whereby the former will provide loans and financial guarantees to promote the participation of Korean firms in the oil and gas development projects of the latter. The potential scale of this initiative is significant as ARAMCO plans to invest USD 125 billion by 2015. An ARAMCO official is quoted on an official Korean website as saying "With the recent trend of projects becoming large-scale and the weak financial market, competitive export financing has become an important factor in awarding a company a contract. If the active financing efforts of Korea Eximbank ease finance-related difficulties, Korean companies will win more contracts." This initiative disadvantages non-Korean bidders for ARAMCO contracts.