ANNOUNCEMENT 26 Oct 2016
On 26 October 2016, the Export-Import Bank of Korea (Korea Eximbank) announced signing a Memorandum of Understanding (MoU) with the African Export-Import Bank (Afreximbank).
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 26 October 2016, Korea Eximbank Envisions Building a Colorful Africa: https://www.koreaexim.go.kr/site/program/board/basicboard/view?menuid=002001007&pagesize=10&boardtypeid=284&boardid=55108
Guide to the Export-Import Bank of Korean: http://ehf.koreaexim.go.kr/File.down?file=/attach_file/conts/en/_English_guide_book.pdf
African export-import bank, press release of 8 June 2016, Sao Tome and Principe becomes Afreximbank’’s 41st Member State: https://afreximbank.com/sao-tome-and-principe-becomes-afreximbanks-41st-member-state/
African export-import bank, press release of 26 October 2016, Afreximbank, KEXIM sign MOU; Agree $100 million facility to boost Korea-Africa trade: https://afreximbank.com/afreximbank-kexim-sign-mou-agree-100-million-facility-to-boost-korea-africa-trade/
The MoU between Korea Eximbank and the Afreximbank has an attached credit line with a total value USD 100 million. The credit line is an Interbank Export Credit and will support Korean companies expand their business to Africa.
In this context, a Korea Eximbank official stated: "This MOU is expected to give needed financial support to Korean companies that are highly motivated to export goods to Africa, which is likely to increase Korean SME's exports to Africa in general."
The Afreximbank has as of 26 October 2016 41 member states, these are respectively: Angola, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Côte d’Ivoire, Democratic Republic of Congo, Egypt, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, and Lesotho. Others are Liberia, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Republic of Congo, Rwanda, Sao Tome, Senegal, Seychelles, Sierra Leone, Sudan, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe
Interbank Export Credit
The Eximbank of Korea extends credit to foreign banks for the purpose of financing companies’ purchase of Korean goods and services through loans. More information on the Bank's financial instruments 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.