ANNOUNCEMENT 29 Aug 2018
In August 2018, the Export-Import Bank of Korea ("Korea Eximbank") announced a financing loan through its Economic Development Cooperation Fund (EDCF) to support Korean subway train exports to Egypt.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, EDCF to Provide a EUR 243 Million Loan for the Procurement of Korean Subway Trains in Egypt. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=1&menuid=002001007&pagesize=10&boardtypeid=284&boardid=60011
On 29 August 2018, the Export-Import Bank of Korea ("Korea Eximbank") announced a financing loan through its Economic Development Cooperation Fund (EDCF) to support Korean subway train exports to Egypt.
Under the terms of the Cairo Metro Line 3 Project agreement, Korea Eximbank would provide an EUR 243 million (USD 284.5 million) loan to purchase 256 subway cars manufactured by Korean train manufacturer Hyundai Rotem. A further EUR 74.8 million (USD 87.6 million) will be provided as export credit.
In this context, the Korean Eximbank mentioned that: "Since the railway vehicle is considered as a high value-added business, French and Korean companies had fiercely competed to win the project. ... Korea Eximbank will extend its all-out efforts for Korean firms to win mega-scale, high value-added projects abroad by providing the blended financing package we have.”
The Economic Development Cooperation Fund
The EDCF provides low-interest and long-term credit to developing countries for projects seeking to promote industrialisation and economic stability. In some cases, Korean companies are involved in such projects directly or through exports. More information on the Fund can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
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.