- Region: Latin America and the Caribbean
- Machinery and Equipment
- Export Loans
March 25, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 24 a loan agreement totaling up to USD9.6 million (JBIC portion) to set up an export credit line ("Credit Line")*1 to the Government of the Republic of Ecuador (Ecuador). The Credit Line is cofinanced with Citibank Japan Ltd., with Nippon Export and Investment Insurance (NEXI) providing Buyer's Credit Insurance for the cofinanced portion. The overall cofinancing amount adds up to USD16 million.
The Credit Line is set up for the Government of Ecuador to provide U.S. dollar funds for the purchase from Japanese companies of broadcasting equipment necessary for the digital broadcasting network building project to be implemented by the state-run broadcasting company, RTV Ecuador, in the cities such as Quito and Guayaquil.
The Japanese government has been pushing forward international proliferation of the Japanese terrestrial broadcasting standard, and 15 countries in the world, mainly in Latin American countries, have decided to adopt this standard to date. Ecuador plans to shift its domestic broadcasting system to terrestrial digital broadcasting after the government decided in March 2010 to adopt a digital broadcasting standard based on the ISDB-T digital broadcast standard*2 developed in Japan. Since then, Japanese companies have been actively engaged in business negotiations for exports of broadcast-related equipment to Ecuador. This credit line will support the export of related equipment from Japan and expand high-quality terrestrial digital broadcasting in Ecuador. It also will contribute to the maintenance and improvement of the international competitiveness of Japanese industries and the international propagation of the Japanese terrestrial digital broadcasting standard backed by public-private cooperation.
As Japan's policy-based financial institution, JBIC will continue to support the export of broadcast-related equipment by Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 An export credit line is a form of export loan in which a commitment is made up to a specified amount of funds beforehand to facilitate the financing of the export of machinery and equipment from Japan.
- *2 ISDB-T (Integrated Services Digital Broadcasting-Terrestrial) is an international standard of digital broadcasting. It has a technological comparative advantage in its capabilities of broadcasting voices, moving images and data to portable devices and broadcasting in times of emergency for disaster prevention. One of its other characteristics is that it is economical, since one transmitter can simultaneously broadcast to portable devices (called 1-seg broadcasting) and high-definition TVs.