The Japan Bank for International Cooperation (Jbic) has signed a US$100mn loan agreement with the Andean Development Corporation (CAF) to directly support trade finance.

The loan forms part of the trade finance initiative launched and expanded by the Japanese government in February and April 2009. This is the first loan to Latin American counties under this initiative.

While Jbic has built up a mutual relationship with CAF for more than 30 years through financing infrastructure projects and Japanese exports to its target regions, this is the first loan to CAF for the purpose of supporting trade finance.

The loan will provide funds for CAF to conduct trade financing through local financial institutions in its shareholder countries. It is expected to facilitate trade finance in this region and thereby contribute to enhancing trade and economic activities primarily in its target regions.