Policy Goal 6-1: General outline of the goal

Transcription

1 Policy Goal 6-1: Ensure stability in foreign exchange markets, and enhance stability in international financial systems, including those in Asia, as well as ensuring their appropriate operation In recent years, amid deepening connections between economies across the globe and as international capital flows have intensified, it has become vital to facilitate smooth capital flows between Japan and other countries. In addition, stabilizing the international financial system has also become important. General outline of the goal Against this background, the MOF is engaged in efforts to ensure the appropriate operation of the foreign exchange system and to strengthen systems aimed at stabilizing the international financial system. In particular, in order to contribute to the stability of economies in Asia, which maintain close economic ties to Japan, the MOF will further strengthen regional financial cooperation within this area. Moreover, the MOF will strive to prevent the abuse of the international financial system in the form of financing for terrorism and the proliferation of weapons of mass destruction. (Measures for achieving the goal) Policy 6-1-1: Ensure stability in foreign exchange markets Policy 6-1-2: Participate in international initiatives contributing to stabilizing and enhancing a stable international financial system Policy 6-1-3: Promote regional financial cooperation in Asia Policy 6-1-4: Address the issue of abuse of the international financial system, such as the provision of financing for:(i) nuclear development by North Korea and Iran, (ii) terrorism and the proliferation of weapons of mass destruction Results of Evaluation of Policy Goal 6-1 of Policy Goal S: Goal achieved Taking into account the fact that all of the measures were rated "," as described above, s in regard to this Policy Goal were rated "S: Goal achieved."

2 Measures Policy 6-1-1: Ensure stability in foreign exchange markets Policy A-1: Provision of accurate and timely information Frequency FY2011 FY2012 FY2013 FY2014 FY2015 Balance of Payments Monthly 12/12 12/12 12/12 12/12 12/12 International Investment Position of Japan Annually 1/1 1/1 1/1 1/1 1/1 International Reserves/Foreign Currency Liquidity Monthly 12/12 12/12 12/12 12/12 12/12 Breakdown of foreign currency denominated assets income in the Foreign Exchange Fund Special Account Annually 1/1 1/1 1/1 1/1 1/1 (quantitative Foreign Exchange Intervention Operations (monthly basis) Foreign Exchange Intervention Operations (daily basis) Monthly 12/12 12/12 12/12 12/12 12/12 Quarterly 4/4 4/4 4/4 4/4 4/4 Balance of Offshore Accounts Monthly 12/12 12/12 12/12 12/12 12/12 International Transactions in Securities Monthly 12/12 12/12 12/12 12/12 12/12 Percentage achieved 100% 100% 100% 100% 100% The MOF intends to continue to disclose timely and accurate information about Foreign Exchange Intervention Operations, International Reserves / Foreign Currency Liquidity, and the Balance of Payments, in order to contribute to the stability in foreign exchange markets, so it has set the aforementioned targets. ( the level of rating) To contribute to stability in the foreign exchange market, the MOF continued to provide timely and accurate information in FY2015, so the level of was rated "."

3 of Measures From the perspective of ensuring stable foreign exchange markets, the MOF strove to exchange opinions closely with the authorities of other countries, while making the most of the G7, G20 and other international frameworks. For example, at the time of the Shanghai G20 meeting in February 2016, Finance Ministers of Japan and the United States had talks and the foreign exchange authorities of respective countries, including those of the United Sates, regularly exchanged opinions. Furthermore, in the Article IV Consultation in May 2015, the MOF exchanged opinions concerning foreign exchange markets with IMF. In the Communiqué of the G20 Finance Ministers and Central Bank Governors (February 27, 2016), the MOF reaffirmed its previous exchange rate commitments, and participating G20 member countries shared the awareness, in response to increasing market fluctuations since the beginning of 2016, that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. This text was explicitly included in the Communiqué for the first time in three years since The Leaders' Declaration of the G7 Elmau Summit (June 8, 2015) was prepared by incorporating the phrase,"we reaffirm our existing G7 exchange rate commitments." The objective of the management of the Foreign Exchange Fund Special Account foreign assets is to ensure sufficient liquidity in order to be prepared for purchases and sales of foreign exchange, etc. needed to secure the stability of Japan's currency. One of the principles under the objective is as follows: the foreign assets held in the Foreign Exchange Fund Special Account should be managed with maximum attention given to safety and liquidity. Under these constraints, profitability should be pursued. Since 2014, Japan has moved to statistics based on the 6th edition of the Balance of Payments and International Investment Position Manual by the IMF, and has begun compiling and disseminating these statistics based on this manual. Thus, as the measurement indicator was rated "," this measure was rated "."

4 Measures Policy 6-1-2: Participate in international initiatives contributing to stabilizing and enhancing a stable international financial system Policy6-1-2-B-1: Participating in international cooperation aimed at achieving stable international financial systems The MOF will actively participate in discussions within international forums such as G20 and G7, and will also conduct policy dialogue with international organizations and financial authorities of other countries. The MOF explained Japan's economic policy and secured the understanding of the other members, while actively participated in discussions on world economy upon such occasions as G20 Finance Ministers' and Central Bank Governors' Meeting held under the Turkish presidency in April, September and October 2015, G20 Antalya Summit held in November 2015, and G20 Finance Ministers' and Central Bank Governors' Meeting held under the Chinese presidency in February In particular, the MOF concretely explained and communicated ongoing Japan's growth strategy and made a substantial contribution to G20 efforts under the Turkish presidency to formulate comprehensive growth strategies for respective countries and the Antalya Action Plan, which is the full G20 plan for achieving stronger, sustainable and balanced growth. At the G20 meeting held at Ankara in September 2015, Japan pointed out the significance of careful policy operation and efforts to address structural problems by the Chinese authority under current circumstances where fluctuations of stock markets and exchange markets have come to originate in China. G20 member countries agreed to continue monitoring economic trends, evaluate ripple effects of such fluctuations and take measures against new risks as necessary to ensure economic confidence and promote financial stability. Furthermore, at the G20 meeting held at Shanghai in February 2016, Japan suggested that each country needs to sincerely address policy challenges in order to properly cope with downside risks. In the Communiqué adopted after the meeting, member countries agreed to take all possible measures concerning financial, fiscal and structural policies individually and comprehensively. Regarding IMF-related policies, the IMF Quota and Governance Reform (2010 Reform), which was agreed in 2010 and for which Japan had positively worked for effectuation through IMF-related meetings and G20 meetings, etc., was finally put into effect in January This will significantly contribute to improving governance and enhancing functions of the IMF.

5 This is because international cooperation is vital to the stability of the international financial system and the strong, sustainable, and balanced growth of the world economy. ( the level of rating) In the event that Japan's initiatives are deemed to have made a substantial contribution to the stability of international finance and the sustainable development of the world economy, from the perspective of international cooperation aimed at achieving a stable international financial system, the level of is to be rated "." In FY2015, Japan actively communicated its economic policies at various international meetings, and in particular, made a substantial contribution to G20 efforts to formulate comprehensive growth strategies and the Antalya Action Plan, as well as to G20 discussions on world economy, and also positively participated in discussions for improving governance and enhancing functions of the IMF. Therefore, the level of was rated "." of Measures The MOF actively participated in international discussions and initiatives on the stability of the international financial system that took place within the G20 and G7 frameworks. For example, the MOF made a substantial contribution to G20 efforts to formulate comprehensive growth strategies and the Antalya Action Plan by providing and disseminating concrete explanations of Japan's growth strategy, which is currently underway. In the case of the IMF, the MOF actively participated in discussions about such matters as IMF governance and the enhancement of its functions. Thus, as the measurement indicator was rated "," this measure was rated "."

6 Measures Policy 6-1-3: Promote regional financial cooperation in Asia Policy B-1: Initiatives aimed at regional financial cooperation in Asia The MOF will actively promote regional financial cooperation, including the Chiang Mai Initiative and the Asian Bond Markets Initiative, as well as bilateral financial cooperation. The MOF made efforts to strengthen the structure of AMRO to reorganize it into an international organization, strengthen the CMIM, and promote the ABMI (preparation of common documents for use when listing on bond markets for professional investors, etc.) The MOF held the Fifth China-Japan Finance Dialogue on June 6, 2015, and the Japan-Korea Finance Dialogue on May 23, Furthermore, the MOF strove to enhance bilateral financial cooperation with ASEAN member countries and endeavored to conclude a bilateral currency swap arrangement again with Singapore. The MOF also offered support for environmental development of Asian financial markets. This is because strengthening financial cooperation in Asia is vital to ensuring the stability of regional financial markets. ( the level of rating) In the event that the MOF is deemed to have actively promoted regional financial cooperation within the ASEAN+3 framework and bilateral financial cooperation, the level of is to be rated "." The MOF actively promoted the measures described above, so the level of was rated "." of Measures With regard to the strengthening of regional financial cooperation in Asia, the MOF has been actively engaged in the ASEAN+3 Finance Ministers and Central Bank Governors' Process. With regard to the CMIM (Chiang Mai Initiative Multilateralisation), the MOF led discussions in the ASEAN+3 Finance Ministers' and Central Bank Governors' Process for the system for smooth operation, in order to increase the readiness and effectiveness of the CMIM. The AMRO (ASEAN+3 Macroeconomic Research Office), which is a regional surveillance organization to support the CMIM, was transformed into an international organization upon its Establishment Agreement in February The MOF also actively promoted the ABMI (Asian Bond Markets Initiative), such as preparing common documents for use when listing on bond markets for professional investors in the ASEAN+3 region, and developing the bilateral linkages of securities and payment settlement systems in the region. As efforts for bilateral financial cooperation, the MOF held the Fifth China-Japan Finance Dialogue on June 6, 2015, and the Japan- Korea Finance Dialogue on May 23, Furthermore, in relation with ASEAN member countries, the MOF concluded a bilateral currency swap arrangement again with Singapore. Thus, as the measurement indicator was rated "," this measure was rated "."

7 Measures Policy 6-1-4: Address the issue of abuse of the international financial system, such as the provision of financing for: (i) nuclear development by North Korea and Iran, and (ii) terrorism and the proliferation of weapons of mass destruction Policy B-1: Implementing sanctions in accordance with United Nations Security Council resolutions and other international collaborative endeavors In accordance with the United Nations Security Council Resolutions (UNSCRs), etc., the MOF will steadily implement relevant measures such as asset freezing measures based on the Foreign Exchange and Foreign Trade Act. Furthermore, working with other members of the international community, the MOF will, in collaboration with relevant ministries and agencies, promote the implementation of the FATF (Financial Action Task Force) recommendations against money laundering and terrorist financing. Moreover, the MOF will conduct foreign exchange inspections. It will attempt to develop and strengthen systems that ensure financial institutions compliance with such legislation as the Foreign Exchange and Foreign Trade Act. The MOF will also endeavor to ensure the effectiveness of these measures. In addition, from the viewpoint of increasing the efficiency and effectiveness of inspections, the MOF will introduce a new inspection method whereby, before conducting an on-site inspection, the MOF holds an interview with the financial institution to be inspected about the internal audits the institution has conducted, and adjusts the inspection items and the number of days for the inspection according to the situation of such internal audits. In light of UNSCRs, etc., the MOF steadily implemented measures such as freezing assets in accordance with the Foreign Exchange Act, targeting individuals such as those with connections to the Taliban and those involved in North Korea's nuclear development program. Regarding Iran, the MOF appropriately implemented measures based on the UNSCR to lift sanctions. For North Korea, the MOF implemented measures such as prohibiting payments to the country in principle. In addition, to ensure the effectiveness of these measures, the MOF conducted foreign exchange inspections and carried out on-site inspections following the hearings of the results of internal audits, with the aim of increasing the efficiency and effectiveness of the inspections themselves. Furthermore, the MOF promoted efforts for implementing the FATF recommendations such as through facilitating development of domestic regulations and working on the preparation for the fourth round Mutual Evaluation of Japan to be conducted sometime later. This is because the steady implementation of measures in accordance with UNSCRs, etc., such as asset freezing measures based on the Foreign Exchange and Foreign Trade Act, contributes to the stability of the international financial system. ( the level of rating) To be deemed to have achieved the target, the MOF must have taken specific action to implement the aforementioned target. In FY2015, the MOF steadily implemented measures such as freezing assets in accordance with the Foreign Exchange Act and appropriately conducted foreign exchange inspections. In addition, it promoted initiatives aimed at putting in place legislation enabling the FATF recommendations to be implemented. Accordingly, the level of was rated "."

8 of Measures Over the years, the MOF has formulated measures targeting North Korea, etc., such as freezing the assets of those involved in nuclear development, based on successive UNSCRs or international cooperation with major countries. In FY2015, the MOF took steps against the targets of new UNSCRs. Regarding Iran, the MOF appropriately implemented measures based on the UNSCR to lift sanctions. In order to ensure the effectiveness of these measures, the MOF conducted foreign exchange inspections, and from the perspective of increasing the efficiency and effectiveness of the inspections themselves, the MOF carried out hearings of the results of financial institutions' internal audits prior to on-site inspections and introduced new inspection techniques to change the items and the number of days for inspections depending on the status of internal audits. The MOF also made an active contribution through such efforts as encouraging humanitarian trade to assist Iran, in accordance with the Joint Plan of Action (JPOA) agreed between Iran and the EU3+3 (UK, France, Germany, U.S.A., China, and Russia). The cabinet orders and ministerial ordinances of the Act relating to the anti-money laundering and counter-terrorist financing regime were enacted during 187th extraordinary session of the Diet. The MOF has worked on the preparation for the fourth round Mutual Evaluation of Japan to be conducted. In this manner, the MOF has steadily taken steps for implementing the FATF recommendations in collaboration with relevant ministries and agencies. Thus, as the measurement indicator was rated "," this measure was rated "." Departments responsible International Bureau (Planning and Administration Division, Research Division, International Organizations Division, Regional Financial Cooperation Division, Foreign Exchange Markets Division) Timing of policy evaluation June 2016

9 Policy Goal 6-2: Promote a wide variety of international cooperation, including financial support and intellectual assistance, to help developing countries stably develop their economy and society General outline of the goal As one of the most important countries in the world, Japan should tackle poverty in developing countries and global environmental problems such as climate change in order to make the global world more free, fair and stable. For those goals, the MOF will provide efficient and effective financial support in order to help developing countries stably develop their economies and societies, taking Japan s severe fiscal situation and the views on ODA among Japanese citizens into account. The MOF will continue to focus on the provision of loan assistance by the Japan International Cooperation Agency (JICA) and financial support by the Japan Bank for International Cooperation (JBIC), in order to contribute to economic development in developing countries. (Measures for achieving the goal) Policy 6-2-1:Make strategic and efficient use of ODA, etc. Policy 6-2-2:Provide support via loan assistance (Japan International Cooperation Agency (JICA)) and support via the Japan Bank for International Cooperation (JBIC), and Multilateral Development Banks (MDBs) Policy 6-2-3:Tackle debt-related problems Policy 6-2-4:Provide intellectual assistance to developing countries Results of Evaluation of Policy Goal 6-2 of Policy Goal S: Goal achieved As all of the measures were rated "s: Goal achieve," s in regard to the Policy Goal were rated "S: Goal achieved." Measures Policy 6-2-1: Make strategic and efficient use of ODA, etc. of Measures With regard to Japanese ODA loans provided by JICA, the first program was formulated under the Equity Back Finance commenced in 2013 and the utilization of new framework is thus progressing. In order to respond to enormous infrastructure demand from emerging countries mainly in Asia, efforts for efficient and strategic utilization of ODA are being steadily made. Such efforts include the publication of measures for further acceleration of Japanese ODA loans and system improvement indicated in the document "Follow-up Measures of the Partnership for Quality Infrastructure" publicized in November Via the GREEN (Global action for Reconciling Economic growth and ENvironmental preservation), etc., which offer support to projects in developing countries that are highly effective in preserving global environment, the JBIC contributed to the development of stable economy and society in developing countries and to the resolution of global-scale issues. Thus, all measurement were rated "," and this measure was rated "."

10 Measures Policy 6-2-2: Provide support via loan assistance (Japan International Cooperation Agency (JICA)) and support via the Japan Bank for International Cooperation (JBIC), and Multilateral Development Banks (MDBs) Policy6-2-2-B-1: Participation in support initiatives via multilateral development banks (MDBs) As Japan is a major shareholder in such Multilateral Development Banks (MDBs) as the World Bank Group and the Asian Development Bank, the MOF will play an active role in their running. The MOF actively participated in the business operations of MDBs through discussions at board meetings and policy consultations. This is because it is vital to increase the effectiveness and efficiency of the aid provided by Japan, by actively participating in the running of MDBs and reflecting Japan's ODA policy and development philosophy as well as its experience and expert knowledge in their policies and operations. ( the level of rating) The MOF actively participated in discussions at board meetings of MDBs, where their operational policies are decided, and strove to reflect Japan's policy therein. Furthermore, the MOF had policy consultations with executive officers of MDBs upon their visits to Japan, and also exchanged opinions with private companies concerning the roles expected of MDBs. Accordingly, the level of was rated "." Policy B- 2: Participation in discussions aimed at global environmental conservation The MOF will actively participate in the running of the Global Environment Facility (GEF) and the Climate Investment Funds (CIF), to which Japan is a major contributor, as well as in discussions concerning the design of the institutional arrangements for the Green Climate Fund (GCF). In addition to discussions at the Climate Finance Ministerial Meeting held in Peru in October 2015 and the COP21 (21st Session of the Conference of the Parties to the Framework Convention on Climate Change) held in Paris in December 2015, the MOF attended meetings of the decision-making bodies of the GEF Council, the CIF Trust Fund Committee Meeting, and the GCF Board, actively participating in their management and the design of their institutional arrangements. This is because Japan must play an active role in discussions, in order to recognize the magnitude of the problems that climate change and other global environmental issues cause for developing countries and to support the conservation of the global environment in developing countries by continuing to provide the necessary aid. ( the level of rating) In addition to major international conferences held last fiscal year, the MOF attended all of the meetings of the decision-making bodies and played an active role in discussions concerning the management of these funds as an executive member, thereby having contributed to global environmental conservation activities. Therefore, the level of was rated "."

11 of Measures In the area of support via multilateral development banks (MDBs), the MOF has played an active role in discussions concerning the business operations of MDBs, further deepening partnerships between Japan and such banks. For example, in the document "Follow-up Measures of the Partnership for Quality Infrastructure" publicized in November 2015, collaboration between Japan and Asian Development Bank (ADB) is cited as one of the priority measures to support such partnership, and efforts are being made to ensure that (i) JICA and ADB cooperatively provide loans to quality infrastructure projects in the private sector including PPPs, and that (ii) JICA and ADB jointly formulate a long-term support plan for the purpose of promoting quality public infrastructure development and newly create a trust fund in ADB for providing cooperative loans to national governments of developing countries. Furthermore, in order to facilitate quality infrastructure investment globally, Japan also agreed on a partnership with the Inter-American Development Bank (IDB) and expanded and extended cooperative loans to create a framework for a trust fund, which enables involvement in projects from the upstream. As initiatives for preserving and improving global environment, which require all-out efforts of the international community, Japan has actively participated in discussions concerning the management of the Global Environment Facility (GEF) and other multilateral funding mechanisms, and has also contributed to system design for carrying out projects of the Green Climate Fund (GCF). Thus, the target for this performance indicator was met. Thus, as all measurement were rated "," these measures were rated "." Measures Policy 6-2-3: Tackle debt-related problems Policy B- 1: Participation in discussions concerning debtrelated problems With regard to the various debt-related problems faced by developing countries, such as growth in non-concessional borrowing which makes their debt sustainability fragile, the MOF will actively participate in discussions within international frameworks such as the IMF, the World Bank, and the Paris Club, with the goal of achieving a comprehensive response that also includes emerging donor countries. The MOF actively participated in discussions within international frameworks such as the IMF, the World Bank, and the Paris Club. The Paris Club reached an agreement with Cuba in December 2015 concerning the repayment of the latter's overdue debts, and an Exchange of Notes on the debt relief was signed between Japan and Argentina in July 2015 based on the preceding Paris Club agreement. The World Bank revised its debt limits policy by permitting flexible mobilization of development funds, while maintaining and improving debt sustainability. This is because, as flows of money into those countries change due to an increase in money from emerging donor countries and the private sector, it is vital to participate actively in discussions in order to ensure that developing countries do not experience difficulty in repaying debt. ( the level of rating) In FY2015, the MOF actively participated in discussions under international frameworks and successfully obtained concrete agreements for the improvement and resolution of debt-related problems in a manner reflecting Japan's opinions, so the level of was rated "."

12 of Measures Japan continued to play an active role in discussions within international frameworks, such as the IMF, the World Bank, and the Paris Club. The Paris Club reached an agreement with Cuba in December 2015 concerning the repayment of the latter's overdue debts, which had been delayed since As one of the major creditor nations, Japan played a leading role in the discussions that led to the agreement. Moreover, in the revision of the Non-Concessional Borrowing Policy (NCBP), which imposes limits on nonconcessional borrowing by poorest countries supported by the International Development Association (a group organization of the World Bank), Japan undertook several rounds of discussion with the World Bank and relevant other countries, leading to such a policy reform that is in conformity with the IMF's debt limits policy revised in FY2014. Thus, as the measurement indicator was rated "," this measure was rated "." Measures Policy 6-2-4: Provide intellectual assistance to developing countries (quantitative Policy A- 1: satisfaction of participants in training courses and seminars concerning intellectual assistance (proportion of respondents rating the course/seminar as meaningful or better) (Unit: %) FY FY2011 FY2012 FY2013 Target 70.0 or more80.0 or more95.0 or more95.0 or more 95.0 or more figure FY2014 FY In order to promote further improvements in the effectiveness of intellectual assistance, the target of achieving a positive rating from at least 95% of participants has been set. (Note 1) The proportion of respondents to surveys of participants in training courses and seminars who gave the event in question an overall rating of "very meaningful" or "meaningful" when asked to choose a rating from the options "very meaningful," "meaningful," "average," "not very meaningful" or "not at all meaningful." See p.212 for an outline of the survey. (Note 2) The figures (percentages) are a simple average of the figures obtained from the questionnaires distributed at each training course and seminar. ( the level of rating) The target of 95% was met, so the level of was rated "."

13 of Measures Working in partnership with the WCO (World Customs Organization), the MOF provided intellectual assistance in the field of customs via training courses in Japan and the dispatch of experts overseas, having first gained a precise understanding of the support needs of customs authorities in developing countries seeking to streamline customs clearance and other customs procedures and make them more transparent, achieve greater efficiency in enforcement techniques, and improve the capabilities of customs authorities overall. Intellectual assistance offered by the Ministry of Finance Policy Research Institute included holding seminars for several countries to promote human resource development in the field of public finance and economics and also support targeting specific countries, such as technical cooperation provided to Myanmar and Laos in the field of SME finance. Regarding support for Myanmar in cultivating capital markets with a view to the establishment of the Yangon Securities Exchange, which had been offered since FY2012, the opening ceremony of the exchange was held in December 2015 and transactions were commenced in March In providing intellectual assistance, the MOF sought to ensure that the nature of the assistance corresponded to the requests of the counterpart country. To this end, it conducted thorough exchanges of opinions in advance with policymakers and practitioners from the counterpart country, staff in charge of financial and economic affairs at diplomatic missions overseas, and JICA experts dispatched abroad long term. In addition, it sought to revise the content of such assistance based on questionnaires and exchanges of opinions after assistance had been provided. Thus, the target for this measurement indicator has been met. Thus, as the measurement indicator was rated "," this measure was rated "." Departments responsible International Bureau (Planning and Administration Division, Regional Financial Cooperation Division, Development Policy Division, Multilateral Development Banks Division), Customs and Tariff Bureau (Planning and Administration Division, International Cooperation Division), Customs Training Institute, Ministry of Finance Policy Research Institute (International Cooperation Division, Research and Co-ordination Department ) Timing of policy evaluation June 2016

14 Policy Goal 6-3: Support Japanese firms to expand their business abroad General outline of the goal The competition to capture the rapidly growing global market, especially in emerging countries, is intensifying all over the world. Under these circumstances, it is important to support Japanese companies to actively expand their business abroad with their advantages such as high technology. Based on "The Japan Revitalization Strategy Revised in 2015" and "The Infrastructure Systems Export Strategy," the MOF will help Japanese countries expand their business abroad with relevant ministries and agencies. The aforementioned goal has been set for this purpose. (Measures for achieving the goal) Policy 6-3-1: Promote support via Japanese ODA loans and the operations of the Japan Bank for International Cooperation (JBIC) Results of Evaluation of Policy Goal 6-3 of Policy Goal S: Goal achieved As the measures were rated "s: Goal achieve," s in regard to the Policy Coal were rated "S: Goal achieved." Measures Policy 6-3-1: Promote support via Japanese ODA loans and the operations of the Japan Bank for International Cooperation (JBIC) Policy6-3-1-B-1: Support initiatives via Japanese ODA loans The MOF will promote Japanese companies' global business development and provide their outstanding technology and knowhow to developing countries, for growth in emerging countries and revitalization of the Japanese economy. The MOF published measures for further acceleration of Japanese ODA loans and system improvement in the document "Follow-up Measures of the Partnership for Quality Infrastructure" on November 21, This is because Japanese ODA loans are one of the most important tools for supporting the economic growth of developing countries and supporting Japanese firms to expand their business abroad. 〇 ( the level of rating) The MOF steadily provided Japanese ODA loans, which is a key tool for Japan in supporting the overseas expansion of Japanese companies, while also supporting the economic development of developing countries, and also published measures for further acceleration of Japanese ODA loans and system improvement. Therefore, the level of was rated "."

15 Policy6-3-1-B-2: Support initiatives via the Japan Bank for International Cooperation (JBIC) Through financial support by JBIC, the MOF will enhance overseas business expansion of Japanese countries, based on "The Japan Revitalization Strategy Revised in 2015." On November 21, 2015, the MOF published measures to strengthen functions of the JBIC for further encouraging overseas expansion of Japanese companies in the document "Follow-up Measures of the Partnership for Quality Infrastructure." This is because financial support provided by JBIC is one of the most important tools for supporting Japanese firms to expand business abroad and supporting economic growth in developing countries. 〇 ( the level of rating) The MOF published measures to strengthen functions of the JBIC for further encouraging overseas expansion of Japanese companies and submitted a draft revision to the JBIC Act for that purpose to the Diet in February In this manner, the MOF promoted support measures through the JBIC and the level of was rated "." of Measures The MOF steadily provided Japanese ODA loans, which is a key tool for Japan in supporting the overseas expansion of Japanese companies, while also supporting the economic development of developing countries, and in the document "Follow-up Measures of the Partnership for Quality Infrastructure" publicized in November 2015, the MOF published measures for further acceleration of Japanese ODA loans and system improvement, such as the introduction of Japanese ODA loans to be repaid in foreign currencies to semideveloped countries and the creation of dollardenominated loans. Regarding the JBIC, which is also a key tool for Japan in supporting the overseas expansion of Japanese companies, the MOF published measures to strengthen its functions for further encouraging overseas expansion of Japanese companies in overseas infrastructure projects, etc. utilizing funds and know how in the private sector in the document "Follow-up Measures of the Partnership for Quality Infrastructure" publicized in November The MOF also submitted a draft revision to the JBIC Act for that purpose to the Diet in February 2016 (the revised JBIC Act was enacted on May 11, 2016). Additionally, the MOF exchanged opinions with private companies regarding expected roles of MDBs and the JBIC. Thus, as the level of was rated "" for all, the rating was "." Departments responsible International Bureau (Planning and Administration Division, Development Policy Division) Timing of policy evaluation June 2016