- Region: Latin America and the Caribbean
- Infrastructures
- Export Loans
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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on November 29(Argentine time), a general agreement with Banco de la Nación Argentina (BNA), the largest commercial bank in Argentina, regarding the provision of an export credit line*1 totaling up to USD36 million (JBIC's portion). The agreement was entered into on the occasion of the Japanese Prime Minister Shinzo Abe's participation in the G20 Leaders' Summit set to take place on November 30 - December 1 in Buenos Aires, Argentina. The loan is to be co-financed by private-sector financial institutions, and the co-financed portion will be insured by the Nippon Export and Investment Insurance (NEXI). The total co-financing amount is USD60 million.
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This credit line is intended to provide financial support to local companies in Argentina that require funding to purchase infrastructure-related equipment from Japanese companies and their overseas affiliates. Financing will be carried out through BNA, which will extend medium/long-term loans denominated in Japanese yen or U.S. dollars. This will facilitate the expansion of business transactions between Argentina and Japanese companies, and the expansion of exports to Argentina from Japan.
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In Argentina, there are prospects for enlarging business opportunities, mainly in the field of infrastructure and energy. Japanese companies are focusing their interest on Argentina as a promising export partner. This credit line is expected to promote the expansion of exports from Japanese companies to Argentina and thereby contribute to maintaining and increasing the international competitiveness of Japanese industry.
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As Japan's policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in exporting infrastructure-related equipment and expanding overseas businesses services in growing markets such as Argentina by drawing on its various financial instruments for structuring projects and expanding its risk-taking capabilities while cooperating with local financial institutions in overseas countries.
Note
- *1
An export credit line is a form of export financing in which JBIC offers credit lines up to a certain amount to promote the export of equipment, etc. from Japan or to support the sales of products, etc. in overseas markets by the local overseas units of Japanese companies.