ANNOUNCEMENT 27 Oct 2016
On 27 October 2016, the Export-Import Bank of Korea (Korea Eximbank) announced providing loans under The Economic Development Cooperation Fund (EDCF) to support two projects in Bangladesh.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 27 October 2016, EDCF to Lend USD 190 million for Railway Rolling Stock Projects in Bangladesh: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=1&menuid=002001007&pagesize=10&boardtypeid=284&boardid=55170
Guide to the Export-Import Bank of Korean: http://ehf.koreaexim.go.kr/File.down?file=/attach_file/conts/en/_English_guide_book.pdf
ExImBank official website: https://www.koreaexim.go.kr/site/main/index002
The EDCF loans have a total value of USD 190 million and will support the Procurement of 20 Nos. Meter Gauge Locomotives Project and the Procurement of 150 Nos. Meter Gauge Passenger Carriages Project in Bangladesh. The Asian Development Bank (ADB) will support these projects with additional funding.
Whilst the loans seeks to support development through infrastructure project in Bangladesh, an official from the Eximbank also highlighted that: "These EDCF-ADB funded projects in Bangladesh are anticipated to have a positive impact on introducing Korea's outstanding railway technologies to the country and pave the way for competent Korean companies to win the bid for follow-up projects in the railway sector, using ADB funds as a leverage."
The Economic Development Cooperation Fund
The EDCF provides low-interest and long-term credit to developing countries for projects seeking to promote industrialisation 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.