ANNOUNCEMENT 29 Jun 2017
On 29 June 2017, the Japan Bank for International Cooperation (JBIC) approved an individual loan agreement for the Tanzanian company Vehicle and Equipment Leasing (Tanzania) Limited through Eastern and Southern African Trade and Development Bank.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 29 June 2017, Approval of Individual Loan Based on Export Credit Line for Eastern and Southern African Trade and Development Bank: http://www.jbic.go.jp/en/information/press/press-2017/0629-56101
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The loan agreement extended by JBIC to Tanzanian company Vehicle and Equipment Leasing (Tanzania) Limited through Eastern and Southern African Trade and Development Bank has a total value of USD 3.6 million. Additionally, the loan is co-financed by Sumitomo Mitsui Banking Corporation amounting to an approximate value of USD 7.3 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion. The loan is granted through the already agreed export credit line, see related measure. The loan finances the Tanzanian company's purchase of construction machinery from Japanese Komatsu Ltd.
In this context, the JBIC stated: "As Japan's policy-based financial institution, JBIC will continue to financially support the exports of machinery and equipment and the overseas business deployment of Japanese companies in the Sub-Saharan African countries which are under the coverage of TDB's (ed. Eastern and Southern African Trade and Development Bank) finance."
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 here to 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.