- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed today the following two Memorandums of Understanding (MOUs) to promote comprehensive partnership and collaboration in developing economic and social infrastructure in Latin America and the Caribbean. The first MOU was signed and exchanged between Governor Kyosuke Shinozawa and Mr. Jacques Rogozinski, General Manager of the Inter-American Investment Corporation (IIC),*1 while the second one was signed and exchanged among Governor Kyosuke Shinozawa; Mr. Enrique Iglesias, President of the Inter-American Development Bank (IDB);*2 and Mr. Wilson Nélio Brumer, Secretary of Economic Development of the State of Minas Gerais, during their visit to Japan to attend the IDB Group's Annual Meeting being held in Okinawa (April 10-12).
(1) Memorandum of Understanding with the IIC to Support SMEs
The MOU seeks to support small and medium enterprises (SMEs), including Japanese affiliates, in Latin America and the Caribbean.
(2) Memorandum of Understanding on the Road Improvement Project in the State of Minas Gerais, Brazil
The MOU seeks to strengthen mutual ties for consultations regarding the road improvement project in the State of Minas Gerais, which is the venue for the next Annual Meeting of the IDB, and other relevant party.
- Numerous Japanese firms are operating in the region of Latin America and the Caribbean, which given the region's abundant natural resources and affordable labor force serves as a production base for these companies' products sold in North America. In particular, the entry into force of the Economic Partnership Agreement (EPA) between Japan and Mexico on April 1, 2005, and the growing presence of Brazil in the international economy as part of the BRICs*3 group have been fueling expectations for enhanced trade ties with this region and greater investment and business operations there.
- The above MOUs signed today seek to support the business operations of Japanese firms in this region. The MOU with the IIC seeks to support those SMEs, including Japanese affiliates, producing parts and components for Japanese firms with production units in the region by promoting the exchange of information and views between JBIC and the IIC. Meanwhile, the MOU on the road improvement project in the State of Minas Gerais seeks to strengthen ties among JBIC and relevant parties through JBIC's lending operations. Specifically, the MOU will promote a mutual exchange of information and views regarding the development of roads used for transport in view of the fact that roads are important infrastructure for the Japanese firms operating in the State of Minas Gerais.
- In Latin America and the Caribbean region, stable macroeconomic policies and rising export prices of primary commodities have helped the countries to emerge from years of lackluster economic performance and achieve robust growth over the past few years. With the signing of these documents, JBIC intends to increase collaboration further with the IDB group, with which JBIC has been cooperating for many years. At the same time, JBIC will support infrastructure development projects in the power, transport and telecommunications sectors in cooperation with individual countries in the region, as it helps to improve the investment climate for Japanese firms, while providing the underpinnings for sustainable economic growth.
|
