The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on September 30 a loan agreement to set up a credit line totaling up to USD150 million with the Black Sea Trade and Development Bank (BSTDB).
The credit line is extended for the purpose of responding to global financial turmoil and preserving the global environment*1. Up to USD150 million of the credit line can be used for emergency measures and up to USD75 million for GREEN operations. The loan is intended to finance, through BSTDB, the necessary funds for structuring projects to support the reconstruction of Ukraine in sectors such as agriculture, food, transport and logistics, digital infrastructure, and medicine in the country and its neighboring countries and subprojects that contribute toward the mitigation of climate change, such as renewable energy projects in member states of BSTDB. The loan will not only respond to disruptions via emergency measures but will also contribute toward promoting adoption of renewable energy and reducing greenhouse gas emissions in the member states of BSTDB.
BSTDB is an international financial institution established to support economic development and promote cooperation among the member countries surrounding the Black Sea. BSTDB has a track record of supporting projects in member countries, including Ukraine, in sectors such as power generation and transport and has expressed its willingness to step in alongside other public institutions to support Ukraine’s reconstruction and rehabilitation. Additionally, with its Climate Change Strategy, BSTDB is committed to expanding support for climate change mitigation and adaptation activities in line with the climate change policies of member states.
In February 2024, JBIC signed a Memorandum of Understanding (MOU)*2 with BSTDB, taking the opportunity of the Japan-Ukraine Conference for Promotion of Economic Growth and Reconstruction. The MOU aims to foster business activities that contribute toward the reconstruction of Ukraine while promoting projects that address climate change mitigation. In the Joint Communique of the Conference, the prime minister of Ukraine, Denys Shmyhal, welcomed the MOU, which serves as the basis for extending the loan.
As Japan's policy-based financial institution, JBIC will continue to financially support initiatives for the reconstruction of Ukraine as well as global environmental preservation.
