ANNOUNCEMENT 19 Sep 2013

On 19 September 2013, the Japan Bank for International Cooperation (JBIC) signed a general agreement with Sberbank of Russia for an export credit line to finance the purchase of renewable energy-related facilities and general construction machinery and other equipment from Japanese companies.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 19 September 2013, Export Credit Line for Sberbank in Russia: http://www.jbic.go.jp/en/information/press/press-2013/0919-13047
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export

Inception date: 19 Sep 2013 | Removal date: open ended

Trade finance

Under the agreement between JBIC and Sberbank of Russia, the credit line extended by JBIC has a value of USD 360 million. The export credit line will finance companies' imports in the CIS region including Russian importers' purchase of renewable energy-related facilities and climate change mitigation-related facilities as well as "construction machinery for infrastructure development and other general equipment related to infrastructure and medical treatment" from Japanese companies. Renewable energy-related facilities include the following power sources: geothermal, wind, biomass, solar and solar thermal generation. Climate change mitigation-related facilities include the following areas: "thermal power plants with CCS facilities, CCS projects, waste to energy projects, hybrid power etc. "Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide from emissions from fossil fuel power plants and stores it in deep waterbeds or geological formations".

In this context, the Bank stated: "As a public financial institution, JBIC will continue to support business expansion of Japanese companies in Russia and its neighboring countries, in collaboration with overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function."

Export credit lines
JBIC provides direct loans to overseas importers or export credit lines to foreign banks. Loans or credit lines 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.