ANNOUNCEMENT 10 Jul 2012
On 10 July 2012, the Export-Import Bank of Korea (Korea Eximbank) announced approving an interbank export credit line to the Brazilian bank Banco Itau BBA to finance the purchase of semi-submersible offshore drilling rig from a Korean manufacturer.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 10 July 2012, USD 300 Million Provided to Brazilian Bank for Export of Offshore Drilling Unit: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=32&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16740
Guide to the Export-Import Bank of Korean: http://ehf.koreaexim.go.kr/File.down?file=/attach_file/conts/en/_English_guide_book.pdf
The interbank export credit line approved by the Korean Eximbank to Banco Itau BBA has a total volume of USD 165 million. Apart from direct funds, the Korean Eximbank also provided a USD 135 million guarantee for the funds provided by the Bank of Tokyo-Mitsubishi UFJ, Ltd under the above-mentioned interbank export credit line. Through the Brazilian bank, the funds will finance Brazilian Petroserv Ltd's purchase of a semi-submersible offshore drilling rig from Korean Daewoo Shipbuilding and Marine Engineering Co. Ltd.
In this context, the Korean Eximbank stated: "Financing of exports through local banks may become a new strategy to overcome limitations associated with direct loans, including importer credibility. We will actively assist Korean firms obtain the financing they need to export and advance overseas by utilizing our global network to identify co-financing opportunities with banks abroad."
Interbank Export Credit
The Eximbank of Korea extends credit to foreign banks for the purpose of financing companies’ purchases 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.