Japan Bank for International Cooperation, Tokyo

The purpose of Japan Bank for International Cooperation shall be to contribute to the sound development of Japan and the international economy and community through undertaking lending and other financial operations: for the promotion of Japanese exports, imports or Japanese economic activities overseas; for the stability of international financial order; and for economic and social development or economic stability in developing areas; in accordance with the principle that it shall not compete with commercial financial institutions.
JBIC'S OPERATIONS CONSIST OF TWO DISTINCT COMPONENTS:
1. International Financial Operations contribute to the promotion of Japanese exports and imports, as well as Japanese economic activities overseas,and to the stability of international financial order.
2. Overseas Economic Cooperation Operations support self-reliant development efforts in developing countries (ODA operations).
These two kinds of operations are strictly separated in terms of financial sources and accounts.
JBIC Operations

International Financial Operations Support the International Activities of Japanese Corporations and Contribute to the Stability of International Financial Order
JBIC operates on two fronts in undertaking Japan's external economic policy and economic cooperation.
On one front it conducts International Financial Operations, which include export loans, import loans, overseas investment loans, untied loans and equity participation in overseas projects of Japanese corporations .
International Financial Operations contribute to the promotion of Japanese exports and imports, as well as Japanese economic activities overseas, and to the stability of international financial order.
In the face of the recent Asian currency crisis, JBIC extended untied loans to the Asian countries in order to stabilize international financial order, at the same time vigorously supporting Japanese affiliates in the region which found difficulties in deteriorating business conditions and credit squeeze.
One of the important sources of finance for these operations is the funds from the Fiscal Investment and Loan Program (FILP), which manages postal savings deposits, employee pension funds and national pension funds. Other financial sources include bond issues in international capital markets and internal funds which are retained interest income from past loans.
International Financial Operations are also bound by an obligation to maintain "financial soundness" in order to ensure effective and efficient undertaking. Specifically the Japan Bank for International Cooperation Law sets forth that repayment for the loans and guarantees should be ascertained ("certainty of repayment") and that expenditures should not exceed revenues ("sufficient revenues to cover expenditures"). JBIC also taking positive steps for disclosure of information on International Financial Operations, while taking into consideration confidentiality obligations to the borrower. top
Overseas Economic Cooperation Operations help Nation Building in Developing Countries
The other component of the operations of JBIC is the Overseas Economic Cooperation Operations which provide financial assistance including ODA loans.
The basic tenet of these operations is to provide concessionary long-term, low-interest funds needed for the self-help efforts of developing countries, including social infrastructure development and economic stabilization. More specifically, JBIC provides ODA loans in various forms attuned to the existing needs, Private-Sector Investment Finance Supporting business activities in developing countries, and development-related research.
Among others, ODA loans are a key form of financial assistance that are indispensable in putting in place socioeconomic infrastructure for the economic development of developing countries. They account for 40 percent of Japan's official development assistance (ODA), making the Overseas Economic Cooperation Operations of JBIC as the cornerstone of Japanese ODA policy. In particular, a recent increase in financial demand for social development and rising needs to deal with global issues such as global environmental conservation have represented diverse development needs in different countries, calling for diverse and sophisticated functions of development assistance.
The sources of finance for the Overseas Economic Cooperation Operations are composed of contributions from the general budget, funds from the fiscal investment and loan program and others. The former comes from tax revenues and government bonds issues, whereas the latter is borrowings under the FILP, which may be traced to postal savings deposits and other sources.
In view of such nature of these funds used in the Overseas Economic Cooperation Operations, vigorous efforts for information disclosure are underway to ensure transparency. top

Links ECA's:
CESCE COFACE COSEC DUCROIRE EKF ECGD EDC EKN ERG EXIM EXPORTERS FINNVERA GERLING-NCM GIEK HERMES HKECIC JBIC KEIC MIGA OeKB SACE

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