ANNOUNCEMENT 22 Dec 2011
On 21 December 2011, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement with the Government of Indonesia to finance the purchase of certain submarine power cables system from a Japanese consortium of companies.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 22 December 2011, Buyer’s Credit for Java-Bali Submarine Cables replacement project to Indonesia: http://www.jbic.go.jp/en/information/press/press-2011/1222-7366
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The buyer's credit loan agreement between JBIC and the government of Indonesia has a value of JPY 2.088 billion (approx. USD 26.75 million).
Through the government of Indonesia, the loan finances the Indonesian state-owned power company, PT. PLN (Persero)'s purchase of a specific submarine power cables system from the Japanese consortium of companies including Sumitomo Corporation and J-Power Systems Corporation.
In this context, JBIC stated: "JBIC will continue to support the expansion of opportunities of Japanese firms to participate in the country’s infrastructure projects."
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.