ANNOUNCEMENT 25 Oct 2012In October 2012, the government of Japan announced a change in its trade finance instruments.
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Japan Bank for International Cooperation, Press Release:
On 25 October 2012, the Japan Bank for International Cooperation (JBIC) signed a bilateral co-financing agreement with the Export-Import Bank of the United States for the support of Japanese and US companies' joint exports to third countries.
The JBIC explained that 'in the case where a Japanese company, jointly with a US company, exports machinery and/or equipment to a third country, the Agreement enables JBIC to finance the entire export' and 'the US Export-Import Bank could provide re-insurance to JBIC to cover the US export portion of the contract'.
The agreement will decrease the administrative burden on exporting for Japanese and US firms and increase the speed of financing operations. The JBIC expects that 'it could contribute to an increase in exports by Japanese and US companies into third country projects in which sourcing from both countries is sought'.
The JBIC is a public financial institution and export credit agency created on 1 October 1999 through the merger of the Japan Export-Import Bank and the Overseas Economic Cooperation Fund.