Japan Bank for International Cooperation (JBIC) has signed a loan agreement totalling up to ¥140mn with the State Export-Import Bank of Ukraine (Ukreximbank). The loan is cofinanced with the Bank of Tokyo-Mitsubishi UFJ.
JBIC provided a credit line totalling US$28.5mn or its yen equivalent for Ukreximbank last November to support exports of Japanese machinery and equipment to Ukraine. This loan will be provided by drawing from this credit line to fund the import of Japanese automatic packaging machines by Ukrainian SMEs.
The credit line was made possible by the agreement JBIC signed with Ukreximbank to strengthen economic relations between Japan and Ukraine during President Yushchenko’s visit to Japan in July 2005.
It was the first loan to Ukraine that relies solely on Ukreximbank’s creditworthiness as a borrower without a guarantee cover provided by the Ukrainian government.
While the Ukrainian economy suffered a major downfall after gaining independence from the Soviet Union in 1991, it has since registered remarkable growth, driven mainly by increased exports in the iron and steel industry. Japanese businesses have thus laid their eyes on the country as a promising destination for their exports. JBIC will support the promotion of Japanese exports to Ukraine by utilising this credit line.