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Brazil Expecting Several Loans from Japan’s JBIC

Brazilian institutions and enterprises will sign next Friday, May 27, in Tokyo, with Japanese partners, nine agreements that may result in investments of US$ 2 billion in Brazil, according to the Directorate of Trade Promotion of Brazil’s Ministry of Foreign Relations.

Japan Bank for International Cooperation (JBIC) may become the main Brazilian partner. The bank may sign agreements with Brazilian Petrobras – Petróleo Brasileiro S.A., the National Bank of Economic and Social Development (BNDES), the Ministry of Science and Technology, and Companhia Vale do Rio Doce (CVRD).

A loan negotiated between Petrobras and Japanese investors may direct US$ 900 million for a modernization project of the Vale do Paraí­ba Refinery.

The agreement between BNDES and JBIC may bring to the Brazilian bank US$ 500 million for businesses credit lines. The Ministry of Science and Technology may provide JBIC loans for Clean Development Mechanism projects, established in the Kyoto Protocol.

Among other companies, the Sumitomo Mitsui Banking Corporation (SMBC) and the Mitsubishi Corporation are also involved in the agreements.

Negotiations entail the participation of Mitsubishi in oil exploration in Brazil, possible exportation of ethanol and of Brazilian software to Japan, as well as the expansion of activities of Petrobras, Bank of Brazil, and CVRD.

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