BALANCE SHEETSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial Account

AssetsCash and due from banks (Note 3)
Securities (Notes 4 and 19)
Loans (Note 5)
Miscellaneous assets (Note 6)
Tangible fixed assets (Note7)
Intangible fixed assets (Note 7)
Deferred charges on bonds and notes (Note 8)
Customers' liabilities for acceptances and guarantees (Note 14)
Allowance for possible loan losses (Note 9)
Total assets

Liabilities and net assets
Liabilities
Bonds and notes (Note 10)
Borrowings (Note 11)
Miscellaneous liabilities (Note 12)
Reserve for bonus payments
Reserve for employee retirement benefits (Note 13)
Acceptances and guarantees (Note 14)
Total liabilities

\

\

\

Net assets
Capital:Capital attributable to the International Financial Account
Retained earnings:
Other retained earnings
Reserve attributable to the International Financial Account (Note 16)
Accumulated deficit
Total stockholders' equity
Net deferred gains (losses) on hedges
Total valuation differences and translation adjustments
Total net assets
Total liabilities and net assets
See accompanying "Notes to Financial Statements" which are an integral part of these statements.

\

In millions of yen

In millions of yen

In millions of U.S. dollars

March 31, 2008

March 31, 2007

March 31, 2008

305,395 \790
6,662,680
639,161
18,041
2,642
1,145
1,536,922(116,226)
9,050,552 \

260,732 $804
7,888,505
198,249
18,4572,180
1,066
1,496,958(130,061)
9,736,893 $

3,048
866,501
6,380
180
26
11
15,340(1,160)90,334In millions of yen

In millions of yen

In millions of U.S. dollars

March 31, 2008

March 31, 2007

March 31, 2008

2,053,373
3,665,483
42,797641
10,673
1,536,922
7,309,891\

1,976,086
4,380,023
194,629637
10,031
1,496,958
8,058,365$

20,49536,585427
6107
15,34072,960985,500

985,500

9,836

780,375(57,429)
722,946
1,708,446
32,21532,215
1,740,661
9,050,552 \

745,236(51,086)
694,149
1,679,649(1,122)(1,122)
1,678,527
9,736,893 $

7,789
(573)
7,216
17,052322
322
17,37490,334

STATEMENTS OF OPERATIONSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountIncomeInterest income
Interest on loans
Interest on due from banks
Fees and Commissions
Other operating income
Foreign exchange gains
Gains on derivative instruments
Other ordinary income
Reversal of allowance for possible loan losses
Recovery of written-off claims
Profits on sales of ｔangible fixed assets
Total income
Expenses
Interest expenses
Interest on bonds and notes
Interest on borrowings
Interest on swaps (net)Fees and Commissions
Other operating expenses
Foreign exchange losses
Amortization of bonds and notes issuance costs
Losses on derivative instruments
OthersGeneral and administrative expenses
Other ordinary expenses
Others
Losses on disposal of ｔangible fixed assets
Total expenses
Net income

In millions of yen

In millions of yen

In millions of U.S. dollars

FY 2007

FY 2006

FY 2007\\

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

340,867
329,238
11,62910,597113
113
140
11,7491,915
8365,392
273,771
63,46364,297
146,010
1,838
8,939
8,103
641
194
16,789118
301,457
63,935\\340,956
332,441
8,515
7,759
1,100
1,099
0
205
17,9011,825
17369,765
280,718
72,052
76,547132,117
2,042
1,193
979
17
195
16,1784343
43300,218
69,546

$

$

3,402
3,286
116
106
1
1
2
117
19
0
3,647
2,733
634
642
1,457
18
89
81
6
2
168
1
3,009
638

STATEMENTS OF CASH FLOWSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountCash flows from operating activities
Net income
Depreciation and amortization
Decrease in allowance for possible loan losses
Increase in reserve for bonus payments
Increase (decrease) in reserve for employee retirement benefits
Interest income
Interest expenses
Net (gain) loss on securities
Foreign exchange loss (gain)
Net loss on sales of tangible fixed assets
Net decrease in loans
Net increase (decrease) in bonds and notes
Net decrease in borrowings
Net decrease in due from banks (excluding cash equivalents)
Interest received
Interest paid
Others, net
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of securities
Sales of securities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Proceeds from sales of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Payment to National Treasury
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period\\

See accompanying "Notes to Financial Statements" which are an integral part of these statements.

In millions of yen

In millions of yen

In millions of U.S. dollars

FY 2007

FY 2006

FY 2007

63,935 \
1,356(13,835)
4642(340,867)
273,771
(13)
133
110
1,225,825
77,719(714,540)
35,466353,333(281,881)(563,731)
117,430

69,546 $1,267(17,901)4(182)(340,956)
280,718
43(10,419)
26
256,940(122,204)(526,546)
107,848346,338(285,199)
8,421(232,253)

638
14
(138)
0
6
(3,402)
2,732
(0)
1
1
12,235776(7,132)354
3,527(2,813)(5,627)
1,172

(187)
82
(417)
(1,107)
12(1,618)

(438)
(445)
(189)
21
(1,052)

(2)
1
(4)
(11)
0
(16)

(35,681)(35,681)(0)80,12931,122111,251 \(36,314)(36,314)0(269,619)
300,742
31,122 $

(356)
(356)
(0)
800
311
1,111

STATEMENTS OF CHANGES IN NET ASSETSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountFor the year ended March 31,2008(In millions of yen)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalCapitalattributable totheInternational
Financial
Account

Other retained earnings
Reserve
attributable tothe International
Financial
Account

Total
retainedearnings

Accumulated
deficitTotal
stockholders'equityNet deferredgains (losses) onhedgesTotal valuationdifferences andtranslation
adjustments

Total net assets

985,500

745,236(51,086)

694,149

1,679,649(1,122)(1,122)

1,678,527

Proceeds from issuance of capital stocks
attributable to the International Financial
Account

-

-

-

-

-

-

-

-

Transfer to reserve attributable to theInternational Financial Account fromaccumulated deficit-

35,139(35,139)

-

-

-

-

-

Payment
to National Treasury from theInternational Financial Account--(35,139)(35,139)(35,139)--(35,139)

Net income--

63,93563,93563,935--63,935

Net changes in the items other thanstockholders' equity

-

-

-

-

-

33,33833,33833,338Net changes during the accounting period-

35,139(6,343)

28,796

28,79633,33833,33862,134

985,500

780,375(57,429)

722,946

1,708,446

32,21532,215

1,740,661

Balance at March 31, 2007

Changes during the accounting period

Balance at March 31, 2008

STATEMENTS OF CHANGES IN NET ASSETSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountFor the year ended March 31,2008(In millions of U.S. dollars)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalCapitalattributable totheInternational
Financial
Account

Other retained earnings
Reserve
attributable tothe International
Financial
Account

Total
retainedearnings

Accumulated
deficitTotal
stockholders'equityNet deferredgains (losses) onhedgesTotal valuationdifferences andtranslation
adjustments

Total net assets

9,836

7,438

(510)

6,928

16,764(11)(11)

16,753

Proceeds from issuance of capital stocks
attributable to the International Financial
Account

-

-

-

-

-

-

-

-

Transfer to reserve attributable to theInternational Financial Account fromaccumulated deficit

-

351

(351)

-

-

-

-

-

Payment
to National Treasury from theInternational Financial Account

-

-

(351)

(351)

(351)

-

-

(351)

Net income

-

-

638

638

638

-

-

638

Net changes in the items other thanstockholders' equity

-

-

-

-

-

333

333

333

Net changes during the accounting period

-

351

(63)

287

287

333

333

620

9,836

7,789

(573)

7,216

17,052322

322

17,374

Balance at March 31, 2007

Changes during the accounting period

Balance at March 31, 2008

STATEMENTS OF CHANGES IN NET ASSETSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountFor the year ended March 31,2007(In millions of yen)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalCapitalattributable totheInternational
Financial
Account

Other retained earnings
Reserve
attributable tothe International
Financial
Account

Total
stockholders'equityTotal
retainedearnings

Accumulated
deficitNet deferredlosses on hedges

Total valuationdifferences andtranslation
adjustments

Total net assets

985,500

709,148(48,457)

660,690

1,646,190--

1,646,190

Proceeds from issuance of capital stocks
attributable to the International Financial
Account

-

-

-

-

-

-

-

-

Transfer to reserve attributable to theInternational Financial Account fromaccumulated deficit-

36,087(36,087)

-

-

-

-

-

Payment
to National Treasury from theInternational Financial Account--(36,087)(36,087)(36,087)--(36,087)

Net income--

69,54669,54669,546--69,546

Net changes in the items other thanstockholders' equity

-

-

-

-

-

(1,122)(1,122)(1,122)

Net changes during the accounting period-

36,087(2,628)33,45933,459(1,122)(1,122)32,336

985,500

745,236(51,086)

694,149

1,679,649(1,122)(1,122)

1,678,527

Balance at March 31, 2006

Changes during the accounting period

Balance at March 31, 2007

NOTES TO FINANCIAL STATEMENTS
JAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial Account

1. Basis of presentation
The accompanying financial statements have been prepared from the accounts maintained by Japan Bank forInternational Cooperation (“JBIC” or the “Bank”) in accordance with the provisions set forth in conformity withaccounting principles and practices generally accepted in Japan, which are different in certain respects as to applicationand disclosure requirements from International Financial Reporting Standards.
The Bank’s accounts are separated into the International Financial Account and the Overseas Economic Cooperation
Account as required under Article 41 of the Japan Bank for International Cooperation Law (“JBIC Law”) whereby theaccounting shall be separated according to the categories of international financial operations and overseas economic
cooperation operations and be recorded by establishing separate accounts for each operation. In separating the accounts,transactions directly related to either of the operations are attributed to the account for these operations and overhead
expenses and others are allocated to both of the accounts in accordance with certain pre-defined allocation rate.
Consolidated financial statements are not prepared since JBIC has no subsidiaries.
The amounts indicated in millions of yen are rounded down by omitting figures less than one million. Totals may
therefore not add up exactly because of such omission.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥100.19=$1.00,
the exchange rate as of March 31, 2008, has been used in translation. The presentation of such amounts is not intended to
imply that Japanese yen have been or could be readily converted, realized or settled into U.S. dollars at that rate or any
other rate.

2. Significant accounting policies(a)Cash and cash equivalents“Cash and cash equivalents” as stated in the statements of cash flows consists of cash on hand and due from Bank ofJapan included in “Cash and due from banks” in the balance sheets.
(b)

Securities
All securities are classified as “Available-for-sale securities” which have no market value and are carried at cost basedon the moving average method.
(c)Valuation method for derivative financial instruments
All derivative financial instruments are carried at fair value, except for certain derivatives that are designated as
hedging instruments as discussed below.
(d)Accounting for hedges of interest rate risks(i) Hedge accounting
JBIC accounts for derivatives used for interest rate risk hedging purposes under the deferral method.
(ii) Hedging instruments and hedged items
Hedging instruments: interest rate swaps
Hedged items: loans, borrowings, bonds and notes(iii) Hedging policy
JBIC enters into hedging transactions up to the amount of the underlying hedged assets and liabilities.
(iv) Assessment of hedge effectiveness
JBIC assesses the effectiveness of designated hedges by measuring and comparing the change of fair value or
cumulative change of cash flows of both hedging instruments and corresponding hedged items from the date ofinception of the hedges to the assessment date.

(e)

Accounting for hedges of foreign exchange risks
Hedge instruments used to hedge foreign exchange risks associated with various foreign currency denominatedmonetary assets and liabilities are accounted for using the deferral method, in accordance with the standard treatment of
The Japanese Institute of Certified Public Accountants (JICPA) Industry Audit Committee Report No. 25.
The effectiveness of the hedging instruments described above, such as currency-swaps, exchange swaps and similartransactions, hedging the foreign exchange risks of monetary assets and liabilities denominated in foreign currencies isassessed by comparing the foreign currency position of the hedged monetary assets and liabilities with that of the hedging
instruments.
(f)Foreign currency translation and revaluation method
JBIC maintains its accounting records in Japanese yen. Assets and liabilities denominated in foreign currencies aretranslated into Japanese yen at the market exchange rate prevailing at the fiscal period end.
(g)

Depreciation basis for fixed assets(i) Tangible fixed assets
Tangible fixed assets are depreciated under the declining balance method over their useful economic lives except
for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciated under thestraight-line method, and the applicable share of estimated annual depreciation costs for the fiscal period isrecorded based on the following range of useful lives.
The principal estimated useful economic lives are as follows:
Buildings: 38 years to 50 years
Equipment: 2 years to 20 years
In accordance with the amendment of the corporate tax laws in this fiscal year, the tangible fixed assets
acquired on or after April 1, 2007 are depreciated based on the depreciation method under the amended
corporate tax laws. Formerly, the assets were depreciated to the uniform residual values determined by the tax
laws. Under the amended tax laws, the uniform residual values were removed. As for the tangible fixed assets
acquired before April 1, 2007, from this fiscal period, their residual values are depreciated over five years using
the straight line method after the regular depreciation to the uniform residual values completes. Thisaccounting change had no material impact on the financial statements of this fiscal period.
(ii) Intangible fixed assets
Amortization of intangible fixed assets is computed by the straight-line method. Software used by JBIC isamortized over its useful life (5 years).
(h)Method of amortization for deferred charges
Bonds and notes issuance costs are amortized under the straight-line method over the terms to redemption.
Bonds and notes issuance costs recorded on the balance sheet as of March 31, 2006 are amortized over 3 years byapplying the previous accounting method based on the tentative measure stipulated in the “Tentative Solution on
Accounting for Deferred Assets” (the Accounting Standards Board of Japan (“ASBJ”) Statement No.19, August 11, 2006).
(i)

Allowance for possible loan losses
The allowance for claims on debtors who are legally bankrupt (“Bankrupt borrowers”) or substantially bankrupt(“Substantially bankrupt borrowers”) is provided based on the outstanding balance after the write-offs described in Note 5(i) and the deductions of the amount expected to be collected through the disposal of collateral and the execution ofguarantees.
The allowance for claims on debtors who are not legally bankrupt but are likely to become bankrupt (“Potentiallybankrupt borrowers”) is provided based on an assessment of the overall solvency of the debtors after deducting theamount expected to be collected through the disposal of collateral and the execution of guarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers and Potentiallybankrupt borrowers is provided primarily based on the default rate, which is calculated based on the actual defaults
during a certain period in the past.
The allowance for possible losses on specific overseas loans is provided based on the expected loss amount taking into
consideration the political and economic situations of these countries.
All claims are assessed initially by the operational departments and secondly by risk evaluation departments based oninternal rules for self-assessment of asset quality. The internal audit department, which is independent from theoperational departments, reviews these self-assessments, and the allowance is provided based on the results of theassessment.
(j)

Reserve for bonus payments“Reserve for bonus payments” is calculated and provided for based on estimated amounts of future payments
attributable to the services that have been rendered by employees to the date of the balance sheet. Reserve for bonus
payments to executive directors is included in the account.
(k)Reserve for employee retirement benefits“Reserve for employee retirement benefits” represents the future payment for pension and retirement benefits toemployees and executive directors, and is accrued based on the projected benefit obligations and the estimated pension
plan assets at the fiscal period end.
The actuarial gain or loss is recognized in the year in which it arises.
(l)Lease transactions
Finance leases that do not involve the transfer of ownership to the lessee at the end of the lease term are accounted foras an operating lease.
(m) Consumption taxes
Consumption taxes, including local consumption tax, are excluded from the transaction amounts.
(n)Significant changes in accounting policies
The definitions of securities in “Accounting Standards for Financial Instruments” (ASBJ Statement No. 10) and in“Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Laws and Regulations Committee
Report No. 14) were partially revised on June 15, 2007 and on July 4, 2007 respectively, which is applicable from the fiscal
period ending on or after the enforcement date of the Financial Instruments and Exchange Law. JBIC has adopted therevised standards and guidelines commencing with this fiscal period.

3. Cash and cash equivalents
The reconciliation between the balance of cash and cash equivalents at the end of each fiscal year and the amount ofcash and due from banks reported in the balance sheets as of March 31, 2008 and 2007 were as follows:
March 31, 2008
（In millionsof yen）¥
Cash and due from banks
Due from banks (*)
Cash and cash equivalents

March 31, 2007
（In millionsof yen）¥

305,395(194,143)
111,251¥¥

March 31, 2008
(In millions of
U. S. dollars)$

260,732(229,610)
31,122$

3,048(1,938)
1,110(*) Excluding Due from Bank of Japan

4. Securities
Securities as of March 31, 2008 and 2007 were as follows:
March 31, 2008
（In millionsof yen）¥
EquityOther securities¥

March 31, 2007
（In millionsof yen）
¥

12
777
790

¥

March 31, 2008
(In millions of
U. S. dollars)
$

12
791
804

0
8
8

$

5. Loans
All of loans are loans on deeds. The amounts reported on the balance sheets as of March 31, 2008 and 2007 were as
follows:
March 31, 2008
（In millionsof yen）¥¥
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans¥

March 31, 2007
（In millionsof yen）

35,877
109,805
42,820188,504¥

March 31, 2008
(In millions of
U. S. dollars)$

47,333
126,610
112,868
286,813

$

358
1,096
427
1,881

(a)

“Bankrupt loans” refer to loans, after write-offs, on which accrued interest income is not recognized as there issubstantial doubt about the ultimate collectability of either principal or interest because they are past due for aconsiderable period of time or for other reasons, and to borrowers who fall into the following categories:- who have begun bankruptcy, settlement, reorganization, winding-up or special liquidation proceedings under the
Bankruptcy Law, the Corporate Reorganization Law, the Civil Rehabilitation Law, the Corporate Law or othersimilar laws of Japan- who have had their transactions with the promissory note clearinghouse suspended, or- who have begun similar proceedings under any foreign law(b)“Non-accrual loans” are loans on which accrued interest income is not recognized, excluding loans on whichinterest payments are deferred in order to support the borrowers’ recovery from financial difficulties.

(c)“Past due loans (3 months or more)” are loans whose principal or interest payment is past due for three months or
more, and which do not fall under the category of “Bankrupt loans” and “Non- accrual loans.”(d)“Restructured loans” are loans whose repayment terms and conditions have been amended in favor of theborrowers (e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, theextension of principal repayments or renunciation of claims) in order to support the borrowers’ recovery fromfinancial difficulties, and which do not fall under the category of “Bankrupt loans,” “Non-accrual loans,” and “Pastdue loans (3 months or more).”(e)

The amounts of loans indicated in the table above are gross amounts prior to deduction of allowance for possible
loan losses.

(f)

In the event that a debtor country encounters temporary payment difficulties and requests debt reschedulingwith respect to external public debt (whose creditors are Sovereigns, Trade Insurance Institutions and Export
Credit Institutions, etc.) due to an unfavorable balance of international payment, meetings of creditor countries (the“Paris Club”) would be held to discuss debt relief measures (rescheduling). When creditor countries agree on debt
relief measures, debt-rescheduling agreements between the creditors and a debtor are agreed. Under such
temporary liquidity assistance, the debtor carries out the Economic Restructuring Program that was agreed with
the International Monetary Fund (“IMF”) and continues to make repayments of the debt. The principal amount ofloans for which JBIC has agreed to provide debt relief pursuant to the Paris Club agreements is as follows:

International Financial Account¥March 31, 2008
（In millionsof yen）
334,826¥

March 31, 2007
（In millionsof yen）
347,972$

March 31, 2008
(In millions of
U. S. dollars)
3,342

In terms of repayment probability of the loans rescheduled in the Paris Club, their nature as public debt, unlike
loans provided by private financial institutions, provides an asset securing mechanism under such an internationalframework. Nonetheless, in order to facilitate comparison with private financial institutions, JBIC classifies thoseloans to borrowers classified under the assessment as “Watchlisted” (but not “Past due loans (3 months or more)”),that were rescheduled under the Paris Club as “Restructured loans.” The amount of such loans, included in“Restructured loans” in the above table, is ¥8,806 million ($88 million) of which ¥5,220 millon ($52 million)
represents original principal attributable to the International Financial Account as of March 31, 2008, ¥7,753
million of which ¥3,838 millon represents original principal as of March 31, 2007.
(g)Upon special request, major creditor countries, including Japan, agreed at the Paris Club to offer a grace period(“Moratorium”) for countries affected by the Sumatra Earthquake and India Tsunami in December 2004 in order tosupport their reconstruction and recovery. During this Moratorium period creditor countries will not expect any debt
payment on the due dates up to December 31, 2005, and will reschedule the repayment period of deferred debts for 5
years including a 1 year grace period.
As of the end of March 2008, of the affected countries, Indonesia and Sri Lanka had requested the Paris Culb for
the Moratorium. The amounts rescheduled repayment period for affected countries, as of the end of March 2008,
were ¥4,922 million ($49 million) in the International Financial Account.
Loans related to this Moratorium are not included in the loans described in (a) to (d) above, since lending terms
has been modified based on an international agreement under this Moratorium to offer a grace period in order tosupport reconstruction and recovery of affected countries, and is therefore irrelevant to their debt-repayment
ability.

(h)

As JBIC’s debtors mainly require long-term loans, JBIC generally enters into commitment line contracts withthese debtors. JBIC provides commitment lines under which it lends necessary funds up to a predetermined amount,which is within the borrowers’ financing needs for the projects and up to the agreed maximum to lend, uponborrowers’ request, provided that the request meets terms and conditions for disbursement prescribed in the Loan
Agreement. The total balance of unused commitment lines as of March 31, 2008 and 2007 were ¥1,282,848 million($12,804million), ￥1,242,335 million respectively.

(i)With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt(“Bankrupt borrowers and substantially bankrupt borrowers”), the residual booked amount of the claims after
deduction of the amount which is deemed collectible through the disposal of collateral or the execution of guarantees
is written-off against the respective claims. The amounts of the accumulated write-offs as of March 31, 2008 and2007 were ￥4,642million ($46 million) and ¥5,472 million respectively.

６．Miscellaneous assets
Miscellaneous assets as of March 31, 2008 and 2007 were as follows:
March 31, 2008

March 31, 2007

March 31, 2008

（In millionsof yen）（In millionsof yen）(In millions of
U. S. dollars)¥¥

Prepaid expenses
Accrued income (a)Derivatives
Preliminary payment to the National Treasury (b)Other (c)221
64,113553,945
20,661
219
639,161¥$
172
77,186
100,569
20,119201
198,249

¥

$

2
640
5,529
207
2
6,380

(Notes)(a)"Accrued income" includes ¥62,493 million ($624 million) and ¥75,578 million of accrued interest on loans andother as of March 31, 2008 and 2007 respectively.
(b)

Pursuant to Article 44 of the JBIC Law, a portion of the net earnings on the General Account of the International
Financial Account is paid to the National Treasury. Preliminary payment to the National Treasury, made on a best
estimate basis, is accounted for on an accrual basis.

(c)"Other" includes ¥5 million ($0 million) of suspense payments as of March 31, 2008 and ¥27 million of suspense
payments as of March 31, 2007.

７．Fixed assets
Fixed assets as of March 31, 2008 and 2007 were as follows:
March 31, 2008
（In millionsof yen）¥¥
Tangible fixed assets
Buildings
Land
Construction in progress
Other
Total
Less-accumulated depreciation
Net book value

Intangible fixed assets
Software
Other
Total
Less-accumulated depreciation
Net book value¥¥

19,166
9,556
22
3,787
32,532
14,491
18,041¥¥¥March 31, 2007
（In millionsof yen）$
19,364
9,556
45
3,794
32,76014,30318,457

¥
¥

¥
3,929
800
4,729
2,087
2,642

March 31, 2008
(In millions of
U. S. dollars)

$
$

191
96
0
38
325
145
180

$
3,555
66
3,622
1,441
2,180

¥
¥

$

39
8
47
21
26

$
$

March 31, 2008
(In millions of
U. S. dollars)
11
11

$

８．Deferred charges on bonds and notes
Deferred charges on bonds and notes as of March 31, 2008 and 2007 were as follows:

Bonds and notes issuance costs¥¥

March 31, 2008
（In millionsof yen）
1,145
1,145

¥
¥

March 31, 2007
（In millionsof yen）
1,066
1,066

９．Allowance for possible loan losses
Allowance for possible loan losses as of March 31, 2008 and 2007 were as follows:
March 31, 2008
（In millionsof yen）¥

March 31, 2007
（In millionsof yen）¥$

15,041
90,29010,894General allowance for possible loan losses
Specific allowance for possible loan losses
Allowance for possible losses on specificoverseas loans¥

116,226

March 31, 2008
(In millions of
U. S. dollars)

25,064
92,69812,299¥130,061

150
901
109
$

1,160

10．Bonds and notes
Bonds and notes as of March 31, 2008 and 2007 were as follows:
Currency
and amounts
March 31, 2008
(In millions)

Description of
Bonds and notes

Date ofissuance

Export-Import
Bank of Japan
Bonds guaranteedby Japanese govt.
40

June 1997

EUR

304

Japan Bank forInternational
Cooperation Bonds
guaranteedbyJapanese govt.
1,5-16

November
1999March
2008

USD
EUR
THB

6,892
1,750
3,000

FILP Agency
Bonds 2, 4, 6, 8,
10,12-29(*)

October
2001November
2007

March 31,
2008
（In millionsof yen）¥
48,230March 31,
2007
（In millionsof yen）¥
164,477

March 31,
2008
(In millions of
U. S. dollars)
$
481

July
2008March 2016

975,428

981,901

9,736

September
2009December
2025

1,029,715

829,706

10,278Interest rate(%)

Maturity
date

5.750

June 2008

3.2507.000

0.5402.090

JPY 1,029,715¥

2,053,373¥

1,976,086$(*) Non-government guaranteed bonds issued in domestic market.
Scheduled redemptions of bonds and notes for each of the next five years as of March 31, 2008 were as follows:
In millions of yen¥
Fiscal year 2008
2009
2010
2011
2012

In millions of U.S. dollars$

127,323
150,109259,588
325,094359,519

1,271
1,498
2,591
3,245
3,588

Based on debt assumption agreements with financial institutions, JBIC has transferred the debt repayment obligation
for certain bonds to such financial institutions. As of March 31, 2008 JBIC had contingent obligations in respect to thefollowing bonds.

FILP Agency Bond 7
FILP Agency Bond 9
FILP Agency Bond 11

In millions of yen
60,00050,00050,000In millions of U. S. dollars
599
499
499

20,495

11．Borrowings
Borrowings as of March 31, 2008 and 2007 were as follows:
Averageinterestrate

Due date of
repayment

Long-term borrowings
Borrowings from theGovernment Fund for Fiscal
Investment and Loan Program

1.43

Borrowings from theGovernment Post Office Life
Insurance Fund

2.08

March 31, 2008
（In millionsof yen）¥

March 31, 2007
（In millionsof yen）¥

March 31, 2008
(In millions of
U. S. dollars)$

3,649,403

4,342,505

36,42516,08037,518160

April 2008June 2017¥

3,665,483¥

4,380,023$

36,585Long-term borrowings with maturities for the next five years as of March 31, 2008 were as follows:
In millions of yen

In millions of U.S. dollars¥
Fiscal year 2008
2009
2010
2011
2012

$
1,015,132
599,829
500,927
367,356
331,494

10,132
5,987
5,000
3,667
3,309

12．Miscellaneous liabilities
Miscellaneous liabilities as of March 31, 2008 and 2007 were as follows:
March 31, 2008
（In millionsof yen）¥
Accrued expenses (a)Unearned income
Derivatives
Other (b)¥March 31, 2007
（In millionsof yen）¥

33,039
6,367
1,885
1,504
42,797¥

March 31, 2008
(In millions of
U. S. dollars)$

40,993
7,780
143,734
2,121
194,629

$

330
63
19
15
427

(Notes)(a)"Accrued expenses" includes ¥10,301 million ($103 million) of accrued interest on borrowings and ¥22,418 million($224 million) of accrued interest on bonds and notes and other as of March 31, 2008 (March 31, 2007: ¥14,852
million and ¥25,546 million respectively).
(b)"Other" includes ¥1,486 million ($15 million) of suspense receipts and other as of March 31, 2008 (March 31, 2007:¥2,067 million).

13．Employee retirement benefits
JBIC has a defined benefit pension plan comprising of a welfare pension fund plan and lump-sum severance indemnity
plan.
(a)

The funded status of the pension plans

Disposition

Projected benefit obligation
Fair value of plans’ assets
Unfunded pension obligation
Unrecognized net obligation at transition
Unrecognized net actuarial gains/losses
Unrecognized prior service cost
Net amount recognized on the balance sheet(A)(B)(C) = (A) + (B)
(D)
(E)
(F)

Prepaid pension cost
Allowance for employee retirement benefits(H)(G) – (H)

(Note)(b)(G) = (C) + (D)+ (E) + (F)¥(10,673)

March 31, 2007
（In millionsof yen）¥(14,518)
4,486(10,031)(10,031)

March 31, 2008
(In millions of
U. S. dollars)
$
(148)
41
(107)
(107)

(10,031)

¥

$

(107)

The projected benefit obligation above includes a portion in which the pension fund acts for the government
welfare program.

Component of pension cost

Disposition

Service cost
Interest cost
Expected return on plans’ assets
Amortization of prior service cost
Amortization of net actuarial gains/losses
Amortization of net obligation at transition
Other costs
Net pension cost(c)March 31, 2008
（In millionsof yen）¥(14,803)
4,130(10,673)(10,673)

March 31, 2008
（In millionsof yen）
¥
528
289
(67)
622
¥
1,373

March 31, 2007
（In millionsof yen）
¥
547
286
(62)
23
¥
794

March 31, 2008
(In millions of
U. S. dollars)
$
5
3
(0)
6
$
14

Principal assumptions madeMarch 31, 2008

Discount rate
Expected rate of return on plan assets
Method of attributing the projected benefits toperiods of services
Amortization period of prior service costs
Amortization period of actuarial gains/losses
Amortization period of net obligation at transition

March 31, 2007
2.0%
1.5%

2.0%
1.5%

Straight-line basis

Straight-line basis

Gains/losses are charged
to net income for the year-

Gains/losses are charged
to net income for the year-

14．Acceptances and guarantees
Acceptances and guarantees as of March 31, 2008 and 2007 were as follows:
March 31, 2008
（In millions ofyen）¥
Acceptances
Guarantees¥

March 31, 2007
(In millions ofyen)¥
1,536,922
1,536,922 ¥March 31, 2008
（In millions of
U.S. dollars）$
1,496,958
1,496,958 $

15,34015,34015. Assets pledged as collateral
There were no assets pledged as collateral as of March 31, 2008 and 2007.

16. Reserve
Pursuant to Article 44 of JBIC Law, “Reserve attributable to the International Financial Account” is provided from net
earnings from the International Financial Account.

17. Lease transactions
Lease transactions in the fiscal years ended March 31, 2008 and 2007 were as follows. There were no impairment losses
for the leased asset.
(a)Finance lease transactions, excluding leases that ownership of the property are deemed to be substantiallytransferred to the lessee:
・Acquisition cost, accumulated depreciation and net balance of leased property as of March 31, 2008 and 2007 were as
follows:
March 31, 2008
（In millions ofyen）

Acquisition cost
Equipment
Others
Total
Accumulated depreciation
Equipment
OthersTotal
Net balance
Equipment
OthersTotal

March 31, 2007
（In millions ofyen）March 31, 2008
（In millions of U.S.
dollars）

¥

¥

$

¥

372
516
888 ¥

408
340
748 $

4
5
9

¥

206
320
527 ¥

295
221
516 $

2
3
5

¥

165
195
361 ¥

113
118
231 $

2
2
4

・Future lease payment obligations as of March 31, 2008 and 2007 are summarized below:
March 31, 2008
（In millions ofyen）¥
Due within 1 year
Due after 1 year
Total

¥

¥
128
237
366 ¥

March 31, 2007
（In millions of
yen）
$
147
91
238 $

March 31, 2008
（In millions of
U.S. dollars）
1
2
3

・Lease payment, depreciation expense and interest expense for the fiscal year ended March 31, 2008 and 2007 wereas follows:March 31, 2008
（In millions ofyen）¥March 31, 2007
（In millions ofyen）March 31, 2008
（In millions of
U.S. dollars）¥

Lease payment
Depreciation expense
Interest expense

$

213
204
7

177
169
6

2
2
0

・Depreciation expense is calculated using the straight-line method over the useful economic life of the respective
leased assets with zero residual value.
・ The difference between total lease payments and the acquisition cost of leased assets is debited to effective interest
expenses, and is allocated to each fiscal year using the interest method.
(b)

Operating lease transactions:・Future lease payment obligations as of March 31, 2008 and 2007 are summarized below:
March 31, 2008
（In millions ofyen）¥

Due within 1 year
Due after 1 year
Total

¥

March 31, 2007
(In millions of
yen)
¥
- ¥

March 31, 2008
（In millions of
U.S. dollars）
$
3
3 $

-

18. Derivative transactions
Notes to derivative transactions in the fiscal year ended March 31, 2008 are as follows:(a)

Policy for derivative transactions
JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange rate risks and interest raterisks associated with its lending and funding operations.
(b)Transactions
Derivative transactions include interest rate and currency swaps and forward exchange contracts.

(c)

Risks involved in derivative transactions
Derivative transactions involve the following risks:(i) Credit risk
Potential loss from the failure of a counterparty to perform its obligations in accordance with terms andconditions under the contract governing transactions due to bankruptcy or deteriorating business.
(ii) Market risk
Potential loss from the changes in the market value of financial products due to fluctuations in interest rates or
exchange rates.

(d)

Policies for risk management on derivative transactions(i) Credit risk
JBIC constantly monitors the market value of its derivative transactions with each counterparty and theamount of its credit exposure and creditworthiness of each counterparty in order to ascertain theappropriateness of entering into or maintaining a transaction with each counterparty.
(ii) Market risk
JBIC uses derivative transactions solely for the purpose of hedging. Therefore, the market risk on derivativetransactions and that on hedged (lending or funding) transactions basically offset each other.

(In 100 millions of U.S. dollars)(In 100 millions of yen)
Credit risk amounts of derivative etc.

Interest rate swaps
Currency swaps
Forward exchange contracts
Other derivatives
Credit risk reductions through nettings
Total(Note)

Contract
amount/notionalamount¥24,13836,12912¥
60,280Credit risk¥¥

Contract
amount/notionalamount
$
241
361
0

730
7,845
0
(1,240)7,335 $

602

Credit risk
$

$

7
78
0
(12)
73

Credit risk amounts are calculated under Uniform International Standards in accordance with the Banking Law
of Japan and the related regulations.

(e)Interest rate-related transactions
There were no interest rate-related derivative transactions recorded at fair value as of the balance sheet date, sincehedge accounting was applied to all interest rate-related derivative transactions outstanding at year end.
(f)Currency-related transactions
There were no currency-related derivative transactions, recorded at fair value as of the balance sheet date, since hedge
accounting was applied to all currency-related derivative transactions outstanding at year end.

(g)

Equity-related transactions
Not applicable(h)Bond-related transactions
Not applicable(i)

Commodity-related transactions
Not applicable(j)Credit derivatives transactions
Not applicable
Notes to derivative transactions in the fiscal year ended March 31, 2007 are as follows:(a)

Policy for derivative transactions
JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange rate risks and interest raterisks that are incurred in respect of its lending and funding operations.
(b)Transactions
Derivative transactions include interest rate and currency swaps and forward exchange contracts.

(c)

Risks involved in derivative transactions
Derivative transactions involve the following risks:(i) Credit risk
Potential loss from the failure of a counterparty to perform its obligations in accordance with terms andconditions under the contract governing transactions due to bankruptcy or deteriorating business.
(ii) Market risk
Potential loss from the changes in the market value of financial products due to fluctuations in interest rates or
exchange rates.

(d)

Policies for risk management on derivative transactions(i) Credit risk
JBIC constantly monitors the market value of its derivative transactions for each counterparty and the amountof its credit exposure and creditworthiness of each counterparty in order to ascertain the appropriateness ofentering into or maintaining a transaction with each counterparty.
(ii) Market risk
JBIC uses derivative transactions solely for the purpose of hedging. Therefore, the market risk on derivativetransactions and that on hedged (lending or funding) transactions basically offset each other.

(In 100 millions of yen)
Credit risk amounts of derivative etc.

Interest rate swaps
Currency swaps
Forward exchange contracts
Other derivatives
Credit risk reductions through nettings
Total(Note)

Contract amount/notionalamount¥26,09745,921
23¥
72,042Credit risk
¥

¥

441
3,987
0
(2,010)2,418

Credit risk amounts are calculated under Uniform International Standards in accordance with the Banking Law
of Japan and the related regulations.

(e)Interest rate-related transactions
There are no interest rate-related derivative transactions recorded at fair value as of the balance sheet date, sincehedge accounting is applied to all interest rate-related derivative transactions outstanding at year end.
(f)Currency-related transactions
There are no currency-related derivative transactions recorded at fair value as of the balance sheet date, since hedge
accounting is applied to all currency-related derivative transactions outstanding at year end.
(g)

Equity-related transactions
Not applicable(h)Bond-related transactions
Not applicable(i)

Commodity-related transactions
Not applicable(j)Credit derivatives transactions
Not applicable

19．Market value of securities
Notes to market value of securities as March 31, 2008 are as follows:(a)

Trading securities
Not applicable(b)

Held-to-maturity debt securities with market value
Not applicable(c)

Available-for-sale securities with market value
Not applicable(d)

Held-to-maturity debt securities soldNot applicable(e)

Available-for-sale securities soldNot applicable(f)

Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable
were as follows:March 31, 2008

March 31, 2008
（In millions of
U.S. dollars)（In millions of yen）¥
Held-to-maturity debt securities
Unlisted foreign securities
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter
Unlisted foreign equities
Other unlisted Japanese securities
Other unlisted foreign securities
Total

$

¥

-

-

12
222
554
790

0
2
6
8

$

(g)

Change in classification of securities
Not applicable(h)

Redemption schedule of available-for-sale securities with maturity and held-to maturity debt securities
Not applicable(i)

Equity securities of subsidiaries and affiliates with market value
Not applicable(j)

Money held in trust
Not applicable(k)

Net unrealized gain (loss) on available-for-sale securities
Not applicable

Notes to market value of securities as March 31, 2007 are as follows:(a)

Trading securities
Not applicable(b)

Held-to-maturity debt securities with market value
Not applicable(c)

Available-for-sale securities with market value
Not applicable(d)

Held-to-maturity debt securities soldNot applicable(e)

Available-for-sale securities soldNot applicable(f)

Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable
were as follows:
March 31, 2007
（In millions of yen）¥

Held-to-maturity debt securities
Unlisted foreign securities
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter
Unlisted foreign equities
Other unlisted Japanese securities
Other unlisted foreign securities
Total
(g)
(h)

-

¥

12
253
537
804

Change in classification of securities
Not applicable
Redemption schedule of available-for-sale securities with maturity and held-to maturity debt securities

Not applicable(i)

Equity securities of subsidiaries and affiliates with market value
Not applicable(j)

Money held in trust
Not applicable(k)

Net unrealized gain (loss) on available-for-sale securities
Not applicable