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ANNOUNCEMENT 30 May 2014
On 29 May 2014, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit agreement with the Government of Turkmenistan to finance the purchase a set of plant facilities from a Japanese company.
NUMBER OF INTERVENTIONS
1
SOURCE
The Japan Bank for International Cooperation, press release of 30 May 2014, Buyer's Credit for Government of Turkmenistan: http://www.jbic.go.jp/en/information/press/press-2014/0530-21470
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The buyer's credit agreement between JBIC and the Government of Turkmenistan has a total maximum value of USD 438 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to an approximate value of USD 730 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the cofinanced portion.
The agreement finances the state-owned company Turkmengaz purchase of a set of plant facilities from Japanese Toyo Engineering Corporation including a gas separation unit, ethane cracker and polypropylene production facilities.
In this context, JBIC stated: "... JBIC's support for Japanese companies' ethylene complex facility export with this loan will lead to creating business opportunities for Japanese companies in the oil and gas sector, thereby contributing to maintaining and improving the international competitiveness of Japanese 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 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.