Japan Bank for International Cooperation (JBIC) has signed an agreement for a bank-to-bank loan totaling US$20mn equivalent, with International Moscow Bank (IMB), a private commercial bank in <
The loan sets up a credit line for IMB to finance the purchase of machinery and equipment by Russian companies in support of exports by Japanese companies. This is the first bank-to-bank loan JBIC has extended to a private commercial bank in Russia.
With the economic crisis of August 1998 behind it, the Russian economy has registered steady growth in the past few years, and demand for capital investment is expected to increase in the coming years in anticipation of sustained growth. It was against this backdrop that Prime Minister Koizumi signed the Japan-Russia Action Plan with President Putin during his visit to Russia in January 2003. The Action Plan called for both sides to examine the possibilities of providing credit based on the credit standing of Russian firms and banks to help promote bilateral trade and economic activities.
Accordingly, JBIC will promote Japanese exports of equipment and machinery to Russia by setting up the credit line for IMB, a private commercial bank, thereby encouraging closer trade and economic relations between Japan and Russia.