- Region: The Middle East
- Machinery and Equipment
- Export Loans
November 19, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on November 16, a general agreement with AKBANK T.A.S. (AKBANK), the major private commercial bank in Turkey, for offering an export credit line*1 amounting to the equivalent of 300 million U.S. dollars (JBIC portion) to finance Japanese exports to Turkey and its neighboring countries (including in the Middle East, Central Asia and North Africa). The credit line is cofinanced with private financial institutions*2, which brings the overall cofinancing amount to the equivalent of 500 million U.S. dollars.
- Under this agreement, an export credit line is offered to AKBANK to extend loans to local companies in Turkey and its neighboring countries for the purchase of Japanese machinery and equipment, such as construction machinery. This export credit line will thus provide medium- and long-term loans to these companies, either in yen or in U.S. dollars, through AKBANK, thus supporting the expansion of the export of Japanese machinery and equipment to these countries.
- In recent years, there have been growing expectations for Japanese exports of machinery and equipment to Turkey and its neighboring countries through collaboration between Japanese and Turkish companies. Under these circumstances, there has been growing interest in a variety of export businesses, including exports of construction machinery, and other infrastructure-related machinery and equipment, and expectations on the major role JBIC should play therein. This credit line will support the export of machinery and equipment to Turkey and its neighboring countries, thereby contributing to maintaining and improving the international competitiveness of Japanese industries.
- JBIC and AKBANK have built close cooperative ties toward setting up of this credit line by signing the MOU*3, in October this year, for the purpose of information exchange on future collaboration in financing. JBIC will continue to support Japanese companies' export of machinery and equipment in collaboration with such foreign financial institutions by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to foreign banks or other entities to finance the export of machinery and equipment from Japan.
- *2 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion cofinanced by private financial institutions.
- *3 See press release on October 10, 2012.