JBIC Governor HAYASHI Nobumitsu participated in Japan-Ukraine Conference for Promotion of Economic Growth and Reconstruction held on February 19, 2024, where he delivered a presentation on JBIC’s initiatives for the recovery of Ukraine.
In the presentation, he announced three new initiatives: (1) signing of a Memorandum of Understanding (MOU) with the Black Sea Trade and Development Bank (BSTDB)*1, (2) signing of an MOU with the International Finance Corporation (IFC)*2, and (3) stationing of Chief Representative for Supporting Ukraine Recovery and Neighbouring Countries*3. Through these and other efforts, JBIC will provide support to meet the needs of this region.
An outline of the speech by JBIC Governor Hayashi is as follows.
The Russian invasion of Ukraine has continued to cause severe damage to the country, and the resulting disruption of the supply chain has brought difficulties to many countries, especially impoverished ones. In response to such an unforgivable act, the international community should show its strong solidarity once again.
The EUR50 billion Ukraine Facility, which was agreed on by the European Council recently, represents the global society’s firm intention to continue assisting the country. At today’s conference, Japan declared it would combine efforts of the public and private sectors to provide continued and enhanced support to Ukraine in the way only it can. JBIC also has been proactive in supporting Ukraine, as a policy-based financial institution of Japan.
In May 2023, JBIC provided a guarantee for JPY93 billion Samurai bonds issued by Bank Gospodarstwa Krajowego (BGK) of Poland. Through this, we supported the funding for the Aid Fund managed by BGK, which provides the fund for humanitarian aid, including for medical care, education, and housing, for refugees from Ukraine to Poland. We received gratitude from President Zelensky for it at the time of the G7 Hiroshima Summit in May 2023.
I talked directly with refugees when I visited a refugee center in Poland, and I confirmed that the support through the fund contributed by JBIC had reached the Ukrainian people. I also met the then Polish Prime Minister Morawiecki and reaffirmed the importance of support for Ukraine through collaboration with like-minded neighboring countries.
In today’s conference, I would like to introduce JBIC’s three new initiatives.
First, we signed an MOU with BSTDB, which is an international financial institution consisting of countries surrounding the Black Sea, including Ukraine. This morning, President of BSTDB, Dr. Serhat Köksal, and Vice President, Mr. Valeriy Piatnytskyi, former Deputy Minister of Economy of Ukraine, who are present here, came to our head office. We signed the MOU in the presence of the Deputy Minister of Economy of Ukraine, confirming the acceleration of the cooperation. Going forward, JBIC will discuss the provision of a two-step loan of USD150 million for BSTDB to support corporate activities in Ukraine and its neighboring countries, which will lead to the recovery of Ukraine.
Second, we renewed the MOU with IFC with a view to supporting Ukraine’s reconstruction. In addition to the current cooperation, this MOU intends to build stronger ties in supporting Ukraine and its neighboring countries.
Also in May 2023, JBIC led discussions for establishing the EBRD-G7 DFI-EDFI Ukraine Investment Platform together with the European Bank for Reconstruction and Development (EBRD). Under this platform, we are working with development finance institutions in the G7 and European countries.
Lastly, we have created the new post of Chief Representative for Supporting Ukraine Recovery and Neighbouring Countries. They will stay in Paris for the time being, grasping the need for Japanese companies’ potential assistance in Ukraine and its neighboring countries and providing practical support for the need.
JBIC will support ambitious Japanese companies to the maximum extent by using various channels and provide assistance to meet the need for the reconstruction of Ukraine.
Note
- *1
- *2
- *3