ANNOUNCEMENT 27 Jun 2013In June 2013, the governments of the Republic of Korea and China announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
Press release: Korean and Chinese ECAs Open New Era of Financial Collaboration. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?menuid=002001007&searchselect=all&searchword=Reciprocal%20Risk%20Participation%20Agreement&pagesize=10&boardtypeid=284&boardid=16881
On the 27 June 2013, the Export-Import Banks (Eximbank) of Korea and China concluded the Reciprocal Risk Participation Agreement (RRPA). The agreement aims to support collaboration between Korean and Chinese companies when entering a third country through co-financing in the form of loans or guarantees.
Under the agreement, the Eximbank of the leading company's jurisdiction will finance the given project. In turn, the other Eximbank will provide a guarantee proportionate to the participation of companies from its jurisdiction. For actions taken under the RRPA, see related measure.
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.