JBIC established an export credit line*1 with the Ministry of Economic Development of the Government of Mongolia to provide funds for local Mongolian companies to purchase Japanese machinery and equipment. Mongolia's development of its mining resources is fueling demand for local infrastructure development, and with this, export opportunities for Japanese companies are expected to grow. Through this credit line, JBIC is providing financial support for exports by Japanese companies. This credit line is the result of discussions based on the memorandum of understanding (MOU) signed between the Mongolian Ministry of Finance and JBIC, and is provided as a part of the ERCH Initiative*2 proposed by Prime Minister Abe in March 2013 with a view to promoting economic ties between the two countries.
- *1An 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 exports of machinery and equipment from Japan.
- *2The ERCH Initiative with two pillars of (1) development of investment / business environment and (2) cooperation for Mongolia's sustainable economic development was proposed by Mr. Shinzo Abe, the Prime Minister of Japan, upon his visit to Mongolia in March 2013.