JBIC to conclude loan agreement with Russian bank www3.nhk.or.jp
NHK has learned that a Japanese government-affiliated bank is preparing to play a role in forging closer economic ties between Japan and Russia. The Japan Bank for International Cooperation, or JBIC, is expected to conclude a loan agreement with Russia's largest bank.
The move comes as the 2 countries discuss economic cooperation ahead of a bilateral summit in Japan next month.
Sources have told NHK that JBIC is in final negotiations with Sberbank. They say it plans to set up a yen-denominated credit line of 30 billion yen, or about 270 million in dollars.
The goal is to make funds available to Russian businesses so they can buy infrastructure-related equipment from Japanese firms.
Commercial Japanese banks are cautious about lending to Sberbank. It's a target of Ukraine-related sanctions by the US and Europe. But the sources say the yen-denominated loans directly from Japan are not covered by the sanctions.
The credit line is intended to meet an increased level of demand for funding, stemming from closer bilateral cooperation.
Published Date:2016-11-18