Trade Insurance to Cover Japanese Bank Loans to Saudi Arabia

Economy Politics

Tokyo, Dec. 15 (Jiji Press)--The Japanese government will give trade insurance coverage to loans extended by Japanese banks to Saudi Arabia's government, officials confirmed Tuesday.

The measure was confirmed in a videoconference between Japanese trade minister Hiroshi Kajiyama and Saudi Minister of Investment Khalid al-Falih.

Trade insurance covers risks involved in international transactions such as exports and overseas investments.

Tokyo is considering having government-held Nippon Export Investment Insurance, or NEXI, provide full protection against any losses on loans that Japanese banks extend to the Saudi Finance Ministry.

The three megabank lenders of MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank are among those expected to provide the insured loans to Saudi Arabia.

[Copyright The Jiji Press, Ltd.]

Jiji Press