Buyer's Credit for Government of Argentina
Supporting Export of Automatic Train Stop System by Japanese Companies
- Area: Latin America and the Caribbean
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on May 19 a loan agreement on buyer's credit (export loan) with the Government of the Argentine Republic (Argentina). The loan is cofinanced with the Tokyo Branch of Deutsche Bank AG, with Nippon Export and Investment Insurance (NEXI) providing insurance for the portion cofinanced by this private-sector bank.
This loan is intended to finance the purchase of a set of railway signal systems from Marubeni Corporation in order for State Company of Administration of Railway Infrastructure (Administración de Infraestructuras Ferroviárias Sociedad del Estado) to carry out installation of automatic railway stop systems for eight Buenos Aires suburban rail lines. NIPPON SIGNAL CO, LTD. will manufacture the railway signal systems.
In Argentina, the Macri administration, inaugurated in December 2015, took measures toward economic reform and return to the international financial market. At the same time, the government announced that an infrastructure development plan, which includes foreign investment and renewal of facilities, in the infrastructure sectors, such as the railway, is being considered. In response to this initiative, Japanese companies aim to capture the opportunities to export their products to the Argentine infrastructure industry. Amid such circumstances, this loan will contribute to improving the safety of the Argentine railway sector by introducing high-quality infrastructure, as well as contribute to maintaining and strengthening the international competitiveness of Japanese industries. Furthermore, this agreement was made mention of at the Japan-Argentina Summit Meeting held on May 19 of this year, and is thus anticipated to further enhance the relationship between the two counties.
As Japan's policy-based financial institution, JBIC will continue to support Japanese companies' export of infrastructure facilities, as well as their overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.