ANNOUNCEMENT 20 Jan 2014
On 20 January 2014, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement with Government of Indonesia to finance the purchase of general purpose trucks from an affiliated company of Japanese Isuzu Motors Limited.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 20 January 2014, Buyer's Credit for Indonesian Government: http://www.jbic.go.jp/en/information/press/press-2013/0120-16975
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The buyer’s credit loan agreement between JBIC and Government of Indonesia has a maximum value of USD 34 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to USD 68 million. The governmental agency Nippon Export and Investment Insurance will provide an Overseas Investment Insurance for the co-financed portion. The loan finances the purchase of 965 general purpose trucks from an affiliated company of Japanese Isuzu Motors Limited.
In this context, JBIC stated: "By financing business transactions of an affiliated company of Isuzu Motors Limited, a Japanese automaker, these loans will support the Japanese automaker to strengthen its capacity to win orders and expand sales. They will thus contribute to the maintenance and improvement of international competitiveness of the Japanese automobile industry."
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 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.