ANNOUNCEMENT 26 Mar 2020

March 26th, 2020 - The Japan Bank for International Cooperation announced it had signed a preferential loan agreement with an Emirati firm to support Japanese exports. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Japan Bank for International Cooperation, March 26th, 2020. (Export Credit Line to Dar Alhai Trading FZE, Dubai, United Arab Emirates)
https://www.jbic.go.jp/en/information/press/press-2019/0326-013126.html

Nippon Export and Investment Insurance, March 26th, 2020. (United Arab Emirates / Supporting Export of Construction Machinery by Japanese Companies (NEXI Underwrites Loan Insurance through Export Credit Line for Dar Alhai Trading FZE)
https://www.nexi.go.jp/en/topics/newsrelease/2020032502.html

Inception date: 26 Mar 2020 | Removal date: open ended

Trade finance

On March 26th, 2020, the Japan Bank for International Cooperation (JBIC) signed a loan agreement with the Emirati firm Dar Alhai Trading FZE for JPY 3.5bn (USD 32 million), with the total loan amount being for USD 62m (JPY 7bn).

The loan was signed with the condition that Dar Alhai Trading use it to buy 'construction and other machinery' from Japanese firms.

According to the JBIC, Dar Alhai Trading is a firm that which sells, leases as well as imports automobiles and construction machinery among others. According to JBIC: "will continue to provide financial support to assist Japanese companies in exporting industrial machinery and equipment, and expanding their business in overseas markets, by drawing on its various financial instruments for structuring projects and performing its risk-assuming function."

Export credit lines
JBIC provides direct loans to overseas importers or export credit lines to foreign entities. Loans or credit lines 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.

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