Apr 30, 2012

On March 17, the BNDES signed a Memorandum of Understanding with the Japan Bank for International Cooperation (JBIC). The signing ceremony took place at the BNDES’ office in Montevideo, Uruguay, at the IDB Annual Meeting and was attended by the BNDES’ President, Luciano Coutinho, and JBIC’s Vice President, Fumio Hoshi.

The newly signed memorandum formalizes the interest of both institutions in establishing a joint cooperation initiative which aims to provide financial support for projects of Brazilian and Japanese interest to be developed in other countries, with a special focus on projects in Africa, Latin America and the Caribbean.

Since the 1950s, the BNDES has operated in partnership with multilateral organizations and government agencies to diversify and expand its funding. The relationship between the BNDES and JBIC began in 1962 when the first loan agreement with the Export-Import Bank of Japan (JEXIM), predecessor of JBIC, was signed. Since then, some 14 contracts have been signed, and the last funding contract amounted to US$ 300 million, related to the GREEN LINE, signed in March 2011. Also worthy of note is that, in 2011, the BNDES and JBIC signed a Memorandum of Understanding in order to implement financial cooperation activities to support infrastructure projects of mutual interest. Throughout these 50 years, the BNDES and JBIC have always sought to develop activities aimed at strengthening their institutional relationship.  At the Annual Meeting of the World Bank and the International Monetary Fund, which will be held in Tokyo this year, the BNDES and JBIC plan to celebrate the 50th anniversary of their partnership, the same year in which the BNDES also celebrates its 60th anniversary.

JBIC is a financial institution, wholly controlled by the Japanese government. It plays an important role in implementing the Japanese government’s economic cooperation policy , supporting sustainable and stable development of foreign countries, thus promoting the strengthening of economic relationships between Japan and the international community.

By expanding its relationship with international financial institutions, the BNDES increases the scale of investments undertaken in partnership with multilateral organizations and government agencies. Signing this new Memorandum of Understanding with JBIC, therefore, enables the BNDES to continue its strategy of expanding international operations.