ANNOUNCEMENT 18 Mar 2018

In March 2018, the Export-Import Bank of Korea ("Korea Eximbank") announced a financing loan for a Turkish infrastructure development project.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Export-Import Bank of Korea, Korea Eximbank to Finance EUR 600 million for Mega-scale Investment Development Project in Turkey. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=2&menuid=002001007&pagesize=10&boardtypeid=284&boardid=59024

Inception date: 18 Mar 2018 | Removal date: open ended

Trade finance

On 18 March 2018, the Export-Import Bank of Korea (Korea Eximbank) announced a financing loan for a Turkish infrastructure development project. Under the terms of the Canakkale Suspension Bridge and Expressway Construction Project loan, it would provide EUR 600 million (USD 737.2 million) in total financing, consisting of EUR 300 million (USD 368.6 million) in lending and EUR 300 million (USD 368.6 million) in a guarantee.

A consortium of Turkish firms, Yapi Merkezi and Limak, will be joined by the Korean firms, SK Engineering & Construction and Daelim Industrial, through the full project timeline from construction to operation. The project is valued at a total of EUR 3.1 billion (USD 3.8 billion). It aims to build the longest suspension bridge between Asia and Europe and is expected to be completed in 2023. 

In this context, an official from the Korean Eximbank stated: "As the project was planned as part of the Turkish government’s commemoration of the 100th anniversary of the foundation of the Turkish Republic in 2023, the competition to win this monumental project was quite fierce among a number of bidders from Korea, China and Japan. Korea Eximbank has devoted all-out support for Korean firms to be awarded as preferred bidders by expressing its intention to provide project financing during the bidding process."

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.

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