- Region: Asia
- Energy and Natural Resources
March 12, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1signed today a memorandum of understanding (MOU) for the purpose of enhancing financial cooperation, including provision of credit lines*2, with the Ministry of Finance of Mongolia. The signing ceremony was attended by Mongolian Prime Minister Sukhbaatar Batbold.
- The MOU states that the two institutions will share information and hold regular consultations regarding candidate projects that could possibly help to increase Japan-Mongolia business and trade activities in the resource, infrastructure and manufacturing sectors. With this MOU, JBIC seeks to strengthen institutional arrangements to support Japanese firms for doing business in such areas as mineral resource development and associated infrastructure development in Mongolia.
- Mongolia attained 17.3% annual real GDP growth in 2011, sustaining brisk growth performance. Endowed with abundant coal, copper and other natural resources, Mongolia has increasingly become important for Japanese firms as a promising country for expansion of their business opportunities, including increased exports from Japan of construction machinery and others associated with mineral resource development projects and infrastructure development. It is expected that enhancing cooperative ties between Mongolia and JBIC through this MOU will lay the groundwork for Japanese firms to expand business operations in Mongolia, thereby developing the two countries' economic relations.
- JBIC will continue to support Japanese firms by creating business opportunities and promoting activities in Mongolia, while serving to develop closer and deeper bilateral economic relations with Mongolia.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 An export credit line is a form of export credit in which JBIC makes a commitment of a specified amount of money as a loan to a foreign bank or other entities to finance the export of machinery, equipment and services from Japan.