JBIC launched just before the dawn of the new century to address globalization and other global-scale challenges

An agile and efficient financial institution was born

In October 1999, as countries began to show signs of economic recovery from the Asian currency crisis, a new policy-based financial institution that would be single-handedly responsible for Japan's foreign economic policy and economic cooperation, took its first steps.

JBIC was born through the merger of JEXIM and OECF, the latter of which had contributed to the economic growth of developing countries. Led by YASUDA Hiroshi, who had been JEXIM’s governor, JBIC began providing support for the sound development of the international economic community, including Japan.

Drastic government reforms, including the reorganization of central ministries and agencies, formed the backdrop to this merger, with expectations that centralizing the information and expertise of two institutions involved in foreign economic relations would result in agile and efficient alignment with policy objectives.

Building on the JEXIM Act and the OECF Act, the JBIC Act was enacted prior to the establishment of JBIC. It stipulated operational goals based on the prevailing economic conditions.

In response to lessons learned from the Asian currency crisis and globalization, the objective of contributing to the "stability of the international financial order” was added to its goals. At the same time, adjustments were made to the scope of financial support, such as export loans.

JBIC went on to actively bolster its support services. For example, a guarantee facility for imports of aircraft and other crucial products was established in FY2002, replacing conventional credit facilities by guaranteeing loans extended by private financial institutions. In the same fiscal year, JBIC introduced performance bond guarantees to give Japanese companies additional creditworthiness by guaranteeing their obligations to foreign counterparties.

In addition, to restore the international competitiveness of Japan's plant facility industry, JBIC also diversified its support methods by establishing a program of feasibility studies and other research that would lead to identifying projects with high potentiality.

Various initiatives to reduce GHG emissions

By the 21st century, heightening awareness within the international economic community of the need for global warming measures led to the enactment of the Kyoto Protocol. To achieve Japan's greenhouse gas emission reduction targets, the government set a policy of leveraging the Kyoto Mechanisms, facilitating joint emission reduction projects with other countries and international trading of emission credits.

In June 2003, JBIC established the position of the Special Advisor for Kyoto Mechanisms to strengthen efforts to help Japan achieve its reduction targets and curb global warming. New unified environmental guidelines came into force in October of that year.

By also signing a cooperation agreement with the International Emissions Trading Association (IETA), an international non-profit organization, JBIC sought to contribute to global warming measures by obtaining the latest information and supporting specific emission reduction projects.