Japan Eyes Aid for Economic Security-Linked Projects Abroad

Tokyo, March 19 (Jiji Press)--The government approved Thursday a bill aimed at creating a new scheme to provide financial support to Japanese companies' overseas projects deemed critical to Japan's economic security.

The bill to revise the economic security promotion law is intended to attract private-sector funds to invest in such projects by having the government assume the risk of losses from investing in them.

Under the scheme, programs to develop refueling bases and other facilities overseas will be supported as "designated overseas projects" to make international transportation networks more resilient.

Operators whose plans are approved by the government will be eligible for financial support from the Japan Bank for International Cooperation, a government-backed lender.

The government will also revise the JBIC law, which currently has strict investment conditions, to allow the lender to make subordinated investments in designated overseas projects to ease private-sector concerns over profitability.

[Copyright The Jiji Press, Ltd.]