- Region: Asia
- Machinery and Equipment
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Export Loans
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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on October 12 a loan agreement amounting up to approximately JPY6 million (JBIC portion) based on a credit line*1 extended to the government of Mongolia in June 2013. This loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (lead arranger), bringing the total cofinancing amount to approximately JPY11 million. The cofinanced portion is insured by Nippon Export and Investment Insurance (NEXI).
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The loan is intended to provide, through the Ministry of Finance of Mongolia, the necessary funds for ADMON PRINT LLC, a Mongolian company, to purchase from TOKOKOSEN CORP. Japanese-made printers, as well as services.
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The enactment of the "Agreement between Japan and Mongolia for an Economic Partnership (EPA)" by the governments of Japan and Mongolia in June of this year is expected to further enhance reciprocal economic cooperation and vitalize the two countries’ economies in a wide range of fields, along with the liberalization and facilitation of trade and investment between the two countries. In addition, in March 2013, the "ERCH Initiative"*2 was proposed by Prime Minister Abe in expectation of promoting the economic relationship between the two countries, and in July 2014, "ERCH Initiative Plus"*3 was agreed on by the two countries' leaders, supplementing the original and resolving to promote financing utilizing this credit line. This loan is in line with such measures of the two countries, and through the promotion of Japanese exports, it contributes to maintaining and strengthening the Mongolian economy as well as the international competitiveness of Japanese industries.
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As Japan's policy-based financial institution, JBIC will continue to financially support the export of machinery and equipment and the overseas business deployment of Japanese companies in foreign countries, including Mongolia, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
Note
- *1 See Press Release on June 6, 2013.
- *2 The proposal by Prime Minister Abe, upon his visit to Mongolia in March 2013, for achieving vibrant economies in the two countries with two pillars of (1) development of investment environment and (2) cooperation for sustainable economic development.
- *3 The proposal by Prime Minister Abe, upon President Elbegdorj’s visit to Japan in July 2014, for promoting Mongolia’s exports and industrial diversification.