ANNOUNCEMENT 26 Jul 2017
On 25 July 2017, the Japan Bank for International Cooperation (JBIC) approved an individual loan agreement for the Mongolian company Khishig Arvin Industrial LLC through the Ministry of Finance of Mongolia and Trade and Development Bank of Mongolia LLC.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 26 July 2017, Individual Agreement Based on Export Credit Line for Mongolia: http://www.jbic.go.jp/en/information/press/press-2017/0726-56245
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The loan agreement extended by JBIC to Mongolian Khishig Arvin Industrial LLC, through the Ministry of Finance of Mongolia and Trade and Development Bank of Mongolia LLC, has a total value of JPY 400 million (USD 3.58 million). Additionally, the loan is co-financed by The Bank of Tokyo-Mitsubishi UFJ, Ltd with an approximate value of JPY 800 million (USD 7.17 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 Mongolian company's purchase of construction machinery from Japanese Komatsu Ltd.
In this context, the JBIC stated: "... through the promotion of Japanese exports, it (ed. the loan) contributes to maintaining and strengthening the Mongolian economy, as well as the international competitiveness of Japanese industries."
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.