Japan to launch facilities to support a $ 550 billion investment under US trade agreement

The Japanese Ministry of Finance said on Friday that his party would establish an investment facility at the State -Owned Development Bank to support the $ 550 billion investment package agreed upon in the Tokyo tariff agreement with Washington.

Japan and the United States signed a memorandum of understanding about the details of this month’s package, said it would focus on investment in sectors such as chips, metals, medicines, energy and shipbuilding that will be carried out in January 2029, which coincided with the end of President Donald Trump’s term of office.

The Japanese investment package will include equity, loan and loan guarantees from the Japanese bank owned by the state for International Cooperation (JBIC) and Nippon Export and Investment Insurance (Nexi).

The new facilities in JBIC will provide financial support for foreign expansion by Japanese companies in the industry that are strategically important for Japanese economic security, the ministry said.

The ministry also said that they revised the regulations on JBIC to expand their investment scope in developed countries, including the automotive and pharmaceutical industries.

Previous regulations limit the scope of JBIC investment in developed countries with certain sectors compared to those in developing countries.
Source: Reuters