INTERIM BALANCE SHEETSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial Account

AssetsCash and due from banks
Securities
Loans
Miscellaneous assets
Premises and equipment
Deferred charges on bonds and notes
Customer's liabilities for acceptances and guarantees
Allowance for possible loan losses
Allowance for possible investment losses
Total assets

Liabilities, capital and retained earnings
Liabilities
Bonds and notes
Borrowings
Miscellaneous liabilities
Allowance for employee bonuses
Allowance for employee retirement benefits
Acceptances and guarantees
Total liabilities
Capital and retained earnings
Capital of the International Financial AccountReserve of the International Financial Account
Retained earnings (deficit)
Total capital and retained earnings
Total liabilities, capital and retained earnings

In millions of yen

In millions of yen

In millions of dollars

September 30, 2002

March 31, 2002

September 30, 2002

801,631 \9,993,049
195,972
21,071
2,594
577,340(173,279)
11,418,379 \\\

403,110 $1,599
11,003,074
230,545
21,576
2,573
574,763(191,142)(1,119)12,044,980 $

6,539
81,509
1,598
172
21
4,709
(1,413)
93,135In millions of yen

In millions of yen

In millions of dollars

September 30, 2002

March 31, 2002

September 30, 2002

\

\

\

\
\

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

1,641,049
7,280,775
385,987510
9,954
577,340
9,895,617

985,500
608,336(71,074)
1,522,761
11,418,379

\

\

\

\
\

1,562,696
7,574,648
762,200
369
9,934
574,763
10,484,613

985,500
564,230
10,636
1,560,367
12,044,980

$

$

$

$
$

13,38559,386
3,148
4
81
4,709
80,715

8,038
4,962
(580)
12,421
93,135INTERIM STATEMENT OF OPERATIONSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountIncomeInterest incomeof which: Interest on loans
Fees and commissions
Other operating income
Other ordinary income
Reversal of allowance for possible loan losses
Profits on sales of premises and equipment
Total income
Expenses
Interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
ODA-loan related losses
Other extraordinary losses
Total expense
Net income (loss)

In millions of yen

In millions of yen

In millions of dollars

First half of FY 2002

FY 2001First half of FY 2002

\

\
\

\
\

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

159,515
147,784
2,753
79
11,282
1
173,632
116,840
497
2,377
7,852
351
39,18824
167,132
6,500

\

\
\

\
\

435,177
425,866
5,681
1,308
99
4,614
3
446,885
305,301
2,506
866
16,378568
39
325,659
121,225

$

$
$

$
$

1,301
1,205
22
1
92
0
1,416
953
4
19
64
3
320
0
1,363
53

INTERIM STATEMENT OF CASH FLOWSJAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountCash flows from operating activities
Net income (loss)
Depreciation and amortization
Increase (decrease) in allowance for possible loan losses
Increase (decrease) in allowance for possible investment losses
Increase (decrease) in allowance for employee bonuses
Increase (decrease) in allowance for employee retirement benefits
Interest income
Interest expenses
Net loss (gain) on securities
Foreign exchange loss (gain)
Net loss (gain) on sales of premises and equipment
Net decrease (increase) in loans
Net increase (decrease) in bonds and notes
Net increase (decrease) in borrowings
Net decrease (increase) in due from banks (excluding cash equivalents)
Net decrease (increase) in reverse repurchase agreement
Interest received
Interest paid
Others, net
Net cash used in operating activities
Cash flows from investing activities
Expenditures on premises and equipment
Proceeds from sales of premises and equipment
Net cash used in investing activities
Cash flows from financing activities
Payment to National Treasury
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) 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 dollars

First half of FY 2002

FY 2001First half of FY 2002

6,500 ¥
556
(17,863)(1,119)141
19(150,102)
116,840
1,471(4,341)
22
613,127
138,700(293,873)(402,499)
150,637(113,636)(2,710)41,869 ¥121,225
1,232(5,855)78369
305(435,177)
305,301(10,466)35
321,382
71,522(456,952)(76,372)
105,418
460,681(353,806)(13,630)
35,290(86) ¥
13(73) ¥

(816)
22
(793)

$

(1)
0
(1)

(46,314)(46,314)0(11,817)
16,639
4,821

$
$
$
$
$
$

(189)
(189)
0
152
39
191

(23,165)(23,165)
018,6304,821
23,451

¥
¥
¥
¥
¥
¥

$

$
$

53
5
(146)
(9)
1
0
(1,224)
953
12
(35)
0
5,001
1,131
(2,397)(3,283)
1,229
(927)
(22)
342

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”) in accordance with the provisions set forth in conformity with accounting
principles and practices generally accepted in Japan, which are different in certain respects as to application anddisclosure requirements from International Accounting Standards.
The financial statements are not intended to present the financial position and results of operations inaccordance with accounting principles and practices generally accepted in countries and jurisdictions other thanJapan.
The Bank’s accounts are separated into International Financial Account and Overseas Economic Cooperation
Account under Article 41 of the Japan Bank for International Cooperation Law (“JBIC Law”) whereby theaccounting shall be separated in accordance with the categories of international financial operations and overseas
economic cooperation operations and be recorded by establishing the respective account for each. In separating
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 by using a certain allocation rate.
Consolidated financial statements are not prepared because JBIC has no subsidiaries.
The amounts indicated in millions of yen are rounded down by omitting the figures less than one million. Totals
may 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¥122.60=$1.00, the exchange rate as of September 30, 2002, has been used in translation. The presentation of suchamounts 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. S
Significa
ignificant
ignificant Accounting Policies

(a) C
Cash
ash and cash equivalents"Cash and cash equivalents” as stated in the statement of cash flows consists of cash in hand and due from Bankof Japan included in “Cash and due from banks" in the balance sheet.
(b) S
Securities
ecurities
All securities are classified as "Securities available-for-sale” which have no market value and are carried at costbased on a moving average cost valuation.
(c) Valuation method for derivative financial instruments
All derivative financial instruments are carried at fair value.
(d) H
Hedge
edge accounting① Hedge accounting
JBIC applies the deferral method of hedge accounting.
② Hedging instruments and hedged items
Hedging instrument: interest rate swaps
Hedged items: loans, bonds and notes③ Hedging policy
To hedge interest rate risks, JBIC utilizes hedging instruments within the range of the hedged assets andliabilities.
④ Evaluation of hedge effectiveness
JBIC judges the effectiveness of the hedge by measuring and comparing the fluctuations of fair value or
cumulative fluctuations of cash flows of hedging instruments and corresponding hedged items from theinception of the hedges to the judging point.
(e) Depreciation basis for fixed assets① Premises and Equipment
Premises and equipment are depreciated on the reducing balance basis except for the buildings (excluding
furniture and equipment) acquired on or after April 1, 1998, which are depreciated on the straight-line basis.
The principal estimated useful lives are as follows:Buildings: 38 years to 50 years
Equipment: 2 years to 20 years② Software
Software used by JBIC is amortized on the straight-line basis over its useful life (5 years).
(f) Method of amortization for deferred charges"Discounts on Bonds and Notes" are amortized over terms of redemption, and "Bonds and Notes Issuance Costs"
are amortized over 3 years, on the straight-line basis in accordance with the Commercial Code of Japan.
(g) F
Foreignoreign currency translation and revaluation method
JBIC maintains its accounting records in Japanese yen. Assets and liabilities denominated in foreign currencies
are translated into Japanese yen at the market exchange rate prevailing at the interim fiscal year end.
JBIC had adopted the “Temporary Treatment of Accounting and Auditing Concerning Accounting for Foreign
Currency Transactions in the Banking Industry” (JICPA Industry Audit Committee Report No.20). Since thecurrent interim fiscal year, however, JBIC have adopted the “Treatment of Accounting and Auditing Concerning
Accounting for Foreign Currency Transactions in the Banking Industry” (JICPA Industry Audit Committee Report
No.25).
In accordance with the transitional applications described in JICPA Industry Audit Committee Report No.25,
regarding foreign exchange swaps relating to lending and funding transactions, nominal amounts of money lentand nominal amounts of money funded are translated into yen using the exchange rates in effect at the interim
fiscal year end and stated in the Interim Balance Sheet on a net basis. Premiums or discounts reflecting interest
rate differences between the two currencies are charged to or credited to the Interim Statement of Operations onan accrual basis over the period from the spot transaction’s settlement date to the forward transaction’s settlement
date, and stated as accrued income under Miscellaneous assets or accrued expenses under Miscellaneous liabilities
on the Interim Balance Sheet.
Such foreign exchange swaps relating to lending and funding transactions are swap transactions that areentered into for the purpose of loans which are sourced from funding in different currencies, where (1) the nominal
amounts of funding or loans which are equal to the amounts of foreign exchange purchased or sold as spottransactions and (2) the amounts of future payment or proceed from loans or funding respectively, with thecontractual interest payment or receipt denominated in foreign currency, are equal to the amounts of foreignexchange forward transaction sold or purchased.
With regard to flat currency swap transactions (including currency swap transactions for which the spot-forward
is flat for each interest payment period) that are entered into for the purpose of loans which are sourced fromfunding in different currencies, where (1) the nominal amounts payable/receivable at the maturity date are equal
to the nominal amounts receivable/payable at the contract date and where (2) the swap rate applied to theprincipal portion and the interest portion are rational, in accordance with the transitional applications described
in JICPA Industry Audit Committee Report No.25, nominal amounts of money lent and nominal amounts of money
funded are translated into yen using the exchange rates in effect at the interim fiscal year end and stated in theInterim Balance Sheet on a net basis. An amount equivalent to the interest swapped are charged to or credited to
the Interim Statement of Operations on an accrual basis over the subject period, and stated as accrued income
under Miscellaneous assets or accrued expenses under Miscellaneous liabilities on the Interim Balance Sheet.
(h) A
Allowance
llowance for possible loan losses
JBIC provided "Allowance for possible loan losses" as follows:
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 describedin Note 5 and the deductions of the amount expected to be collected through the disposal of collateral andexecution of guarantees.
The allowance for claims on debtors who are not legally bankrupt but are likely to become bankrupt("Potentially Bankrupt Borrowers") is provided based on an assessment of the overall solvency of the debtors after
deducting the amount expected to be collected through the disposal of collateral or the execution of guarantees.
The allowance for claims on debtors other than the above (Bankrupt Borrowers, Substantially Bankrupt
Borrowers and Potentially Bankrupt 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 amountconsidering the political and economic situations of these countries.
All claims are assessed initially by the operational departments and secondly by risk evaluation departments
based on internal rules for self-assessment of asset quality. The internal audit department, which is independent
from the operational departments, reviews these self-assessments, and the allowance is provided based on the
results of the assessment.

(i) Allowance for employee
employ ee bonuses"Allowance for employee bonuses" is set aside to pay employee bonuses with respect to the portion of estimatedbonus payments to employees that correspond to the current period. "Allowance for employee bonuses" includes
allowance for bonuses to executive directors.
(j) Allowance
Allowance for employee retirement benefits
Allowance for employee retirement benefits represents the future payment for pension and retirement toemployees, and is recorded as the amount accrued at the interim fiscal year end, based on the projected benefit
obligations, and the estimated pension plan asset amount at the interim fiscal year end. The method of accounting
for net actuarial gains/losses is as follows:
Net Actuarial Gains/Losses are charged to net income of the year.
"Allowance for employee retirement benefits" includes allowance for retirement benefits to executive directors.
(k) Consumption tax
Consumption tax including local consumption tax is excluded from the transaction amounts.

3. C
Cash
ash and Cash Equivalents
The reconciliation between the balance of cash and cash equivalents at the end of each (interim) fiscal year andthe amount of cash and due from banks reported in the (interim) balance sheets as of September 30 and March 31,
2002 are as follows:
September 30, 2002
(In millions of yen)March 31, 2002
(In millions of yen)

September 30, 2002
(In millions of dollars)

Cash and Due from Banks
Due from Banks(*)¥

801,631(778,180)¥

403,110(398,288)$

6,539(6,347)

Cash and Cash
Equivalents¥

23,451

¥

4,821

$

191

(*) Excluding Due from Bank of Japan

4. Securities
Securities as of September 30 and March 31, 2002 are as follows:
September 30, 2002
（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
Unlisted
Japanese
Local
Government Bonds
Unlisted Japanese Corporate
Bonds
Unlisted Foreign bonds
Other
Unlisted
Japanese
Securities
Other
Unlisted
Foreign
Securities¥

March 31, 2002
(In millions of yen)

September 30, 2002
(In millions of dollars)

- ¥
-

- $
1,599
-

-

-

1,599
-

-

-

-

-

-

-

-

-

-

-

- ¥

1,599 $-

5. Loans
Loans
All of Loans are loans on deeds. The amounts reported in the (interim) balance sheets as of September 30 andMarch 31, 2002 are as follows:

September 30,2002
International Financial AccountBankrupt Loans(In millions of yen)￥

Non-accrual Loans

2,641 ￥
230,847

March 31, 2002

September 30,2002(In millions of yen) (In millions of dollars)
2,641 ＄
310,446

22
1,883

Past Due Loans (3 Months or More)

34,32839,044280

Restructured Loans

286,012

172,7542,333

553,829 ￥524,887 ＄

4,517

￥

(a) "Bankrupt Loans", which are placed non-accrual status, are loans to borrowers who have begun bankruptcy,
composition, reorganization, winding-up or special liquidation proceedings under the Bankruptcy Law, theCorporate Reorganization Law, the Civil Rehabilitation Law, the Commercial Code or other similar laws ofJapan, or who have had their transactions with the promissory note clearinghouse suspended, or loans toborrowers who have begun similar proceedings under any foreign law. Those loans are categorized as loans to“Bankrupt Borrowers” under self-assessment of asset quality.
(b) "Non-accrual loans" are loans which are placed non-accrual status and are other than "Bankrupt loans.” Thoseloans are categorized as loans to “Substantially Bankrupt Borrowers” or “Potentially Bankrupt Borrowers”
under self-assessment of asset quality.
(c) "Past due loans (3 month or more)" are loans whose principal and/or interest is past due three months or morecounted from the date following the scheduled payment date, and are other than "Bankrupt loans" and"Non-accrual loans.” Those loans are also categorized as loans to "Watch borrowers" under self-assessment ofasset quality.
(d) "Restructured loans" are loans whose contracts were amended in favor of obligors (e.g. reduction of or
exemption from stated interest, deferral of interest payments, extension of maturity dates, renunciation ofclaims) in order to assist or facilitate restructuring processes of the obligors in financial difficulties, and areother than "Bankrupt Loans", "Non-accrual loans", and "Past due loans (3 month or more)". Those loans are also
categorized as loans to "Watch borrowers" under self-assessment of asset quality.
(e) The amounts of Loans indicated above are the gross amounts prior to reduction of allowance for possible loan
losses.
(f) In the event that a debtor country which becomes temporarily difficult to pay and requests debt reschedulingwith respect to external public debt (whose creditors are nations, Trade Insurance Institutions and Export
Credit Institutions, etc.) because of the 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 areagreed, and temporary liquidity assistance is made according to the agreements. Since the debtor carries out
Economic Restructuring Program which was agreed with the International Monetary Fund (“IMF”) andcontinues to make repayments of the debt, those loans are excluded, in principle, from the above amounts. The
principal amount of loans for which JBIC has agreed to provide debt relief pursuant to the Paris Club
agreements is as follows:

International Financial AccountSeptember 30,2002
March 31, 2002
September 30,2002(In millions of yen)
(In millions of yen) (In millions of dollars)
424,533 ￥430,269 ＄3,463￥

The Government of Japan has provided debt relief under TDB (the Trade and Development Board) scheme in
the form of grant aid for eligible ODA loan recipients in exchange for repayments of ODA loans based on the
resolution of TDB of the UNCTAD in 1978. Therefore, JBIC's ODA Loans to eligible TDB countries had been
substantially secured by matching grant aid for debt relief provided by the Government of Japan in the amountequivalent to repayment amount of principal and interest owed by such eligible TDB countries.
On the other hand, public creditors agreed to support the countries, which were regarded as Heavily Indebted
Poor Countries ("HIPCs") by the World Bank and the IMF and also were identified as the "HIPCs Initiative" and“Enhanced HIPCs Initiative”, which was qualified and agreed to reduce a part of the debt of HIPCs after theestablishment of economic reform programs by the international financial institutions (IMF, World Bank, etc.) in
Lyon Summit in June, 1996 and in Cologne Summit in June, 1999 respectively. After the debtor countries agreed
to the economic reform programs, the Paris Club creditors agreed to the application of the (Enhanced) HIPCs
Initiative. JBIC's ODA Loans to the HIPCs Initiative countries are substantially secured by matching grant aid
for debt relief provided by the Government of Japan to the HIPCs, because, as to debt reduction of ODA Loans to
HIPCs, Japanese government announced, in "Statements by Chief Cabinet Secretary on Japan's proposal for the
Debt Initiative for the Heavily Indebted Poor Countries" dated April 28,1999, expansion of bilateral grant aid for
debt relief to the HIPCs.
However, the above-mentioned grant aid for debt relief under TDB and HIPCs scheme was replaced by awaiver of loans provided by JBIC in accordance with the “Changes in Debt Relief Method” announced by theGovernment of Japan on December 10, 2002. JBIC thus has written off all amounts of corresponding ODA loans
to eligible TDB countries except for scheduled repayments within the current fiscal year which will be coveredby TDB scheme and all amounts of corresponding ODA loans to the Enhanced HIPCs Initiative countries. JBIC
has also provided 100% allowance for corresponding ODA loans to the HIPCs Initiative countries which are notdetermined to be applied by the Enhanced HIPCs Initiative.
(g) As JBIC's debtors need mostly long-term loans, JBIC generally enters into commitment line contracts withthese debtors. JBIC is committed to lend necessary funds up to the predetermined amount, which shall bewithin the borrowers’ financing needs for the projects and up to the agreed maximum to lend, upon borrowers’
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 September 30 and March 31, 2002 are¥1,774,707 million and ¥2,072,688 million respectively.
(h) With respect to the claims with collateral or guarantees on debtors who are legally or substantially bankrupt("Bankrupt Borrowers and Substantially Bankrupt Borrowers"), the remaining booked amount of the claims
after deduction of the amount which is deemed collectible through the disposal of collateral or the execution ofguarantees was written-off against the respective claims. The amount of the accumulated write-offs as of
September 30 and March 31, 2002 are ¥8,160 million and ¥4,540 million respectively.

6.Miscellaneous Assets

A part of the net earnings on the General Account of the International Financial Account is paid to the
National Treasury, pursuant to Article 44 of the JBIC law. Preliminary payments to the National Treasury,
made on a best estimation basis amounted to ¥3,737 million ($30 million) for the interim year ended September
30, 2002 and ¥24,677 million ($185 million) for the year ended March 31, 2002 respectively, and accounted forunder Miscellaneous assets on the (interim) balance sheet.

7. Acceptances and Guarantees
Acceptances and Guarantees as of September 30 and March 31, 2002 are as follows:
September 30, 2002

March 31, 2002

September 30, 2002

（In millions of yen） （In millions of yen）¥
Acceptances-

Guarantees

577,340
577,340¥（In millions of dollars）$

574,763574,763 $

4,709
4,709

8. Assets Pledged as Collateral
There were no assets pledged as collateral as of September 30 and March 31, 2002.

9. Retained Earnings

A part of the net earnings on the International Financial Account was paid to the National Treasury pursuant to
Article 44 of the JBIC Law. The payment to the National Treasury was accounted for the appropriation of net
earnings.
Another part of the net earnings on the International Financial Account was appropriated for reserve of theInternational Financial Account, pursuant to Article 44 of the JBIC Law, the related law and the related cabinet
order.

10. Extraordinary Losses ("ODA( ODAODA-loan related losses")losses )The Government of Japan has provided debt relief under TDB (the Trade and Development Board) scheme in
the form of grant aid for eligible ODA loan recipients in exchange for repayments of ODA loans based on the
resolution of TDB of the UNCTAD in 1978. Therefore, JBIC's ODA Loans to eligible TDB countries had been
substantially secured by matching grant aid for debt relief provided by the Government of Japan in the amountequivalent to repayment amount of principal and interest owed by such eligible TDB countries.
On the other hand, public creditors agreed to support the countries, which were regarded as Heavily Indebted
Poor Countries ("HIPCs") by the World Bank and the IMF and also were identified as the "HIPCs Initiative" and“Enhanced HIPCs Initiative”, which was qualified and agreed to reduce a part of the debt of HIPCs after theestablishment of economic reform programs by the international financial institutions (IMF, World Bank, etc.) in
Lyon Summit in June, 1996 and in Cologne Summit in June, 1999 respectively. After the debtor countries agreed
to the economic reform programs, the Paris Club creditors agreed to the application of the (Enhanced) HIPCs
Initiative. JBIC's ODA Loans to the HIPCs Initiative countries are substantially secured by matching grant aid for
debt relief provided by the Government of Japan to the HIPCs, because, as to debt reduction of ODA Loans to
HIPCs, Japanese government announced, in "Statements by Chief Cabinet Secretary on Japan's proposal for the
Debt Initiative for the Heavily Indebted Poor Countries" dated April 28,1999, expansion of bilateral grant aid for
debt relief to the HIPCs.
However, the above-mentioned grant aid for debt relief under TDB and HIPCs scheme was replaced by a waiverof loans provided by JBIC in accordance with the “Changes in Debt Relief Method” announced by the Governmentof Japan on December 10, 2002. JBIC thus has written off all amounts of corresponding ODA loans to eligible TDB
countries except for scheduled repayments within the current fiscal year which will be covered by TDB scheme andall amounts of corresponding ODA loans to the Enhanced HIPCs Initiative countries. JBIC has also provided 100%
allowance for corresponding ODA loans to the HIPCs Initiative countries which are not determined to be appliedby the Enhanced HIPCs Initiative. Those losses are reflected in the extraordinary losses ("ODA-loan related
losses").

11.
11 Leased Transactions
Leased transactions in the interim fiscal year ended September 30, 2002 are as follows:(a) Finance lease transactions, excluding leases where the ownership of the property is deemed to be transferredto the lessee.
Not applicable(b) Operating lease transactions:・Future Lease Payment Obligations(In millions of yen)
(In millions of dollars)Within 1 year
¥8$0More than 1 year
¥2
$0

Total
¥11
$0

Leased transactions in the fiscal year ended March 31, 2002 are as follows:(a) Finance lease transactions, excluding leases where the ownership of the property is deemed to be transferredto the lessee.
Not applicable(b) Operating lease transactions:・Future Lease Payment Obligations(In millions of yen)

Within 1 year
¥14

More than 1 year
¥6

Total
¥20

12. Derivative Transactions
Notes to derivative transactions in the interim fiscal year ended September 30, 2002 are as follows:(a) Interest RateRate -related Transactions
There is no interest rate-related derivative transaction whose valuated gain/(loss) by market value is accounted
for in the interim Statement of Operations.
Hedge accounting is applied to all of the interest rate-related derivative transactions.
(b) CurrencyCurrency-related Transactions
There is no currency-related derivative transaction whose valuated gain/(loss) by market value is accounted forin the interim Statement of Operations.
Certain currency swaps have been accounted for by using the accrual method of accounting based on thetransitional applications described in "Treatment of Accounting and Auditing Concerning Accounting for Foreign
Currency Transactions in the Banking Industry", which is widely used by Japanese commercial banks. The
Contractual Amount etc. of such currency swaps accounted for on an accrual method is as follows:
September 30, 2002
（In millions of yen）
Type

Contractual AmountMarket Value¥
Currency Swaps¥
4,669,319

Unrealized Gain/(Loss)¥

23,001-

September 30, 2002
（In millions of dollars）
Type

Contractual Amount$Currency Swaps

Market Value$

38,086

Unrealized Gain/(Loss)$

188(c) EquityEquity-related Transactions
Not applicable(d) Bond
Bondond-related Transactions
Not applicable(e) Commodity
Commodityommodity -related Transactions
Not applicable(f) Credit
Credit Derivatives Transactions
Not applicable
Notes to derivative transactions in the fiscal year ended March 31, 2002 are as follows:(a) Policy for Derivative Transactions
JBIC engages in derivatives transactions solely for the purpose of hedging foreign exchange rate risks andinterest rate risks that are incurred in respect of its lending and funding operations.
(b) Transactions
Derivatives transactions include interest rate and currency swaps and forward exchange contracts.

-

(c) Risks Involved in Derivatives Transactions
Transactions
Derivatives transactions involve the following risks.
① Credit Risk
Potential loss from the failure of a counterparty to perform its obligations in accordance with terms andconditions under a contract governing transactions due to bankruptcy or deteriorating business.
② Market Risk
Potential loss from changes in the market value of financial products due to fluctuations in interest rates or
exchange rates.
(d) Policies of Risk Management for Derivatives Transactions① Credit Risk
JBIC consistently monitors the market value of its derivatives 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 transactions with each counterparty.
② Market Risk
JBIC uses derivatives transactions solely for the purpose of hedging. Therefore, the market risk on derivatives
transactions and that on hedged (lending or funding) transactions are basically offset.

Credit Risk Amounts of Derivatives, etc.

(In 100 millionｓ of yen)Contract
Amount/Notional
AmountCredit Risk
March 31, 2002¥¥
Interest Rate Swaps
17,629899
Currency Swaps
50,9094,329
Forward Exchange Contracts
100
Other Derivatives
Credit Risk Reductions through Netting(3,028)
Total¥

68,549 ¥2,200(Note) Credit Risk amounts are calculated under Uniform International Standards in accordance with the
Banking Law of Japan and the related regulations.
(e) Interest RateRate -related Transactions
There is no interest rate-related derivative transaction whose valuated gain/(loss) by market value is accounted
for in the Statement of Operations.
Hedge accounting is applied to all of the interest rate-related derivative transactions.
(f) Deferred Hedge Profits
JBIC recorded fair value of hedging instruments at the fiscal year ended March 31, 2001 as deferred hedge
profits under Miscellaneous liabilities. From the fiscal year ended March 31, 2002, it records the net amount offair value of hedging instruments at March 31, 2002 and realized profits and losses arising on hedging
instruments as deferred hedge profits under Miscellaneous liabilities.
As a result of this, deferred hedge profits decreased by 14,240 million yen, and net income increased by thesame amount.

(g) CurrencyCurrency-related Transactions
There is no currency-related derivative transactions whose valuated gain/(loss) by market value is accounted forin the Statement of Operations.
Certain currency swaps have been accounted for by using the accrual method of accounting based on"Temporary Treatment of Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in
the Banking Industry", which is widely used by Japanese commercial banks. The Contractual Amount etc. of suchcurrency swaps accounted for on an accrual method is as follows:
March 31, 2002
（In millions of yen）
Type

Contractual Amount¥Currency Swaps

Market Value¥

5,071,727

Unrealized Gain/(Loss)¥(377,490)(h) EquityEquity-related Transactions
Not applicable(i) Bond
Bondond-related Transactions
Not applicable(j) Commodity
Commodityommodity -related Transactions
Not applicable(k) Credit
Credit Derivatives Transactions
Not applicable

13. Market Value of Securities
Securities

Notes to market value of securities as of September 30, 2002 are as follows:
The followings includes "Securities" and negotiable due from banks in "Cash and Due from Banks"
(a) H
Held
eldeld-toto -maturities Debt Securities
Securitie s
Not applicable(b) Ava
Available
vailableilable -forfor -sale Securities with market value
Not applicable(c) HeHeldldld-toto-maturity Debt Securities and AvailableAvailable-forfor-sale Securities whose market value is not readily determinableNot applicable(d) Money Held in Trust
Not applicable(e) Net Unrealized Gain (Loss) on AvailableAvailable -forfor -sale Securities
Not applicable
Notes to market value of securities as of March 31, 2002 are as follows:
The followings includes "Securities" and negotiable due from banks in "Cash and Due from Banks"(a) T
Tradingrading Securities
Not applicable
(b) H
Held
eldeld-toto -maturities Debt Securities
Securitie s
Not applicable(c) A
Available
vailablevailable -forfor -sale Securities with market value
Not applicable
(d) H
Held
eldeld-toto -maturities Debt Securities soldNot applicable(e) A
Availabvailablevailablele -forfor -sale Securities soldNot applicable-(f) Held
Heldld-toto-maturity Debt Securities and AvailableAvailable-forfor-sale Securities whose market value is not readily determinable
are as follows:
March 31,2002（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
Unlisted Japanese Local Government Bonds
Unlisted Japanese Corporate Bonds
Unlisted Foreign bonds
Other Japanese securities
Other unlisted foreign securities
Total¥(g) Change of Classification of Securities
Not applicable(h) Redemption Schedule of AvailableAvailable -forfor -Securities with Maturity
Not applicable(i) Money Held in Trust
Not applicable(j) Net Unrealized Gain (Loss) on AvailableAvailable-forfor-sale Securities
Not applicable

1,599
1,599
1,599