Untied loans are intended to finance projects and the import of goods by foreign countries, or for such countries to achieve equilibrium in their international balance of payments, or to stabilize their currencies. They are also intended to finance overseas businesses of foreign companies (“eligible foreign companies”) that have become part of supply chains or industrial platforms of strategically important goods or technologies essential for Japan’s economic activities and the lives of the people of Japan. Loans are not conditional on investments or procurement of equipment and materials from Japan.
Capital procured from untied loans is used to: maintain and expand trade with and direct investment from Japan; secure stable supplies of energy and mineral resources for Japan; promote business activities of Japanese companies; finance projects having significant effects on global environmental preservation; and finance projects maintaining order in international financing.
* Refer to foreign companies that have become part of supply chains or industrial platforms of strategically important goods or technologies essential for Japan’s economic activities and the lives of the people of Japan. The fields of applicable goods, technologies, and industrial platforms are specified in the ordinance of Japan’s Ministry of Finance (As of October 1, 2023).
(i) Operations related to “important goods”
Of the following operations, those necessary for enhancing the resilience of the supply chain for goods procured by Japanese or Japanese-affiliated companies
- Development of important resources for Japan
- Manufacturing of equipment and other items necessary to generate electricity from renewable energy
- Manufacturing of rechargeable batteries
- Manufacturing of components and accessories of ships and aircraft
- Development and manufacturing of medical devices
- Development and manufacturing of pharmaceuticals
- Manufacturing of motors
- Manufacturing of semiconductors, including the raw materials and equipment necessary for the manufacturing
- Development and manufacturing of fertilizers, agricultural instruments, and other goods necessary for food
- production, including agriculture
- Manufacturing of low-carbon materials
(ii) Operations related to “important technologies”
Of the following operations, those necessary for facilitating the provision of technologies utilized by Japanese and Japanese-affiliated companies
- Development of artificial intelligence-related technologies
- Development of technologies related to quantum computers and other equipment that harness the quantum
- property
- Development of biotechnology
- Development of blockchain technology
(iii) Operation related to “bases necessary for global business operations”
Of the following operations, those necessary for global business activities by Japanese and Japanese-affiliated companies
- Development of bases for power generation, transmission, etc., necessary to provide electricity from renewable energy
- Development of bases for utilizing information and communication technology (including launching, tracking, and controlling of communication satellites)
- Medical care