BALANCE SHEETS (UNAUDITED)JAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial Account

AssetsCash and due from banks (Note 3)
Securities (Notes 4 and 15)
Loans (Note 5)
Miscellaneous assets (Note 6)
Premises and equipment (Note 7)
Tangible fixed assets (Note7)
Intangible fixed assets
Deferred charges on bonds and notes
Customers' liabilities for acceptances and guarantees
Allowance for possible loan losses
Total assets

Liabilities and equity
Liabilities
Bonds and notes (Note 8)
Borrowings
Miscellaneous liabilities
Reserve for bonus payments
Reserve for employee retirement benefits
Acceptances and guarantees (Note 9)
Total liabilities

\

\

\

EquityCapital:Capital attributable to the International Financial Account
Retained earnings:
Reserve attributable to the International Financial Account (Note 12)
Accumulated deficit
Total equity
Total liabilities and equity\

Net assets
Capital:Capital attributable to the International Financial Account
Retained earnings:
Other retained earnings
Reserve attributable to the International Financial Account (Note 12)
Accumulated deficit
Total stockholders' equity
Net deferred gains 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 yen

In millions of U.S. dollars

September 30, 2006

September 30, 2005

March 31, 2006

September 30, 2006

660,055 \609
7,855,990
205,31118,5092,418
1,419
1,139,823(145,831)
9,738,307 \448,285 \212
8,172,388
333,221
18,966
3,733
975,429(146,172)9,806,065 \

636,786 $400
8,080,007
205,162
18,9014,227
1,066,099(147,963)
9,863,621 $

5,598
566,633
1,741
157
21
12
9,668
(1,237)
82,598In millions of yen

In millions of yen

In millions of yen

In millions of U.S. dollars

September 30, 2006

September 30, 2005

March 31, 2006

September 30, 2006

2,120,441 \4,619,984
188,307601
10,117
1,139,823
8,079,274

1,777,685 \
5,215,435
208,255628
10,647
975,429
8,188,081

2,043,963 $
4,906,569
189,951
632
10,213
1,066,099
8,217,430-

985,500

985,500--

709,148(76,664)
632,483
1,617,983
9,806,065 \

709,148(48,457)(660,690)
1,646,190
9,863,621 $-\

17,98539,186
1,597
5
86
9,668
68,527985,500

-

-

8,359

745,236(89,548)655,687
1,641,187
17,845
17,845
1,659,032
9,738,307 \

-

-

6,321
(760)
5,561
13,920151
151
14,071
82,598\$STATEMENTS OF OPERATIONS (UNAUDITED)JAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountIncomeInterest income
Interest on loans
Other interest income
Fees and Commissions
Other operating income
Other ordinary income
Other extraordinary income (Note 11)
Total income
Expenses
Interest expenses
Fees and Commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Other extraordinary losses
Total expenses
Net income\\

In millions of yen

In millions of yen

In millions of yen

In millions of U.S. dollars

First half of FY 2006

First half of FY 2005

FY 2005

First half of FY 2006

162,851
3,930
166,782
3,886
512
129
3,171
174,482
135,063
399
665
7,216
48
5
143,398
31,084

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

\\

158,030
1,727
159,758
4,249
2,051
96
2,276
168,432
101,176
762
645
6,947
7,390
7
116,929
51,503\\

312,822
6,297
319,119
8,097
3,840
191
2,358
333,606
226,059
3,212
1,275
14,1409,186
20
253,895
79,711

$

$

1,381
34
1,415
33
4
1
27
1,480
1,146
3
6
61
0
0
1,216
264

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)JAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountFirst half of FY 2006

(In millions of yen)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalOther retained earnings
Capitalattributable totheReserve
International
attributable to the
Accumulated
Financial
International
deficitAccount
Financial AccountTotal
stockholders'equityTotal
retainedearnings

Net deferredgains 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--

31,08431,08431,084--31,084

Net changes in the items other thanstockholder's equity

-

-

-

-

-

17,845

17,845

17,845

Net changes during the interim accounting
period-36,087(41,091)(5,003)(5,003)

17,845

17,845

12,841

985,500

745,236(89,548)655,687

1,641,187

17,845

17,845

1,659,032

Balance at March 31,2006

Changes during the interim accounting period

Balance at September 30, 2006

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)JAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountFirst half of FY 2006

(In millions of U.S. dollars)
Valuation differencesandtranslation adjustments

Stockholders' equity

Retainedearnings

CapitalOther retained earnings
Capitalattributable totheReserve
International
Accumulated
attributable to the
Financial
deficitInternational
Account
Financial AccountTotal
stockholders'equityTotal
retainedearnings

Net deferredgains on hedges

Total valuationdifferences andtranslation
adjustments

Total net assets

8,359

6,015

(412)

5,603

13,962--

13,962

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

-

-

-

-

-

-

-

-

Transfer to reserve attributable to theInternational Financial Account fromaccumulated deficit

-

306

(306)

-

-

-

-

-

Payment
to National Treasury from theInternational Financial Account

-

-

(306)

(306)

(306)

-

-

(306)

Net income

-

-

264

264

264

-

-

264

Net changes in the items other thanstockholder's equity

-

-

-

-

-

151

151

151

Net changes during the interim accounting
period

-

306

(348)

(42)

(42)

151

151

109

8,359

6,321

(760)

5,561

13,920151

151

14,071

Balance at March 31,2006

Changes during the interim accounting period

Balance at September 30, 2006

STATEMENTS OF CASH FLOWS (UNAUDITED)JAPAN BANK FOR INTERNATIONAL COOPERATIONInternational Financial AccountCash flows from operating activities
Net income
Depreciation and amortization
Decrease in allowance for possible loan losses
Increase (decrease) in reserve for bonus payments
Decrease in reserve for employee retirement benefits
Interest income
Interest expenses
Net loss on securities
Foreign exchange gain
Net loss on sales of premises and equipment
Net gain on sales of tangible fixed assets
Net decrease in loans
Net increase in bonds and notes
Net decrease in borrowings
Net increase in due from banks (excluding cash equivalents)
Interest received
Interest paid
Others, net
Net cash (used in) provided by operating activities
Cash flows from investing activities
Purchases of securities
Sales of securities
Expenditures on premises and equipment
Expenditures on tangible fixed assets
Expenditures on intangible fixed assets
Proceeds from sales of premises and equipment
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 yen

In millions of U.S. dollars

First half of FY 2006

First half of FY 2005

FY 2005

First half of FY 2006

31,084618(2,131)(31)(96)(166,782)
135,06348(9,855)(4)
261,550
50,000(286,585)(252,279)
170,231(130,144)(7,956)(207,270)\

51,503433(24,980)
33(64)(159,758)
101,17622(192,559)
6
484,631
5,995(143,841)(256,548)
156,757(96,019)
176,410103,199\

79,711
955(23,190)37(497)(319,119)
226,05926(334,982)
18
760,051
229,542(452,707)(251,814)
332,126(227,148)
290,453309,522

$

(249)
(117)
(139)
11
(494)

(124)
1
(136)
3
(256)

(309)
1
(440)
11
(737)

(22,179)(22,179)
0(229,945)
300,742
70,797 \(19,964)(19,964)
082,97926,683
109,662 \(34,726)(34,726)0
274,058
26,683
300,742 $

264
5
(18)
(0)
(1)
(1,415)
1,146
0
(84)
(0)
2,219
424
(2,431)(2,140)1,444(1,104)(67)(1,758)
(2)
(1)
(1)
0
(4)
(188)
(188)
0
(1,950)
2,551
601

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)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 toapplication and 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 the accounting shall be separated according to the categories of international financial
operations and overseas economic cooperation operations and be recorded by establishing a separate account foreach 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 theaccounts 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¥117.90=$1.00, the exchange rate as of September 30, 2006, has been used in translation. The presentation ofsuch 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 fromBank of Japan 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 atcost based on a moving average cost valuation.
(c)

Valuation method for derivative financial instruments
All derivative financial instruments are carried at fair value, except for certain derivatives that aredesignated as hedging instruments as discussed below.
(d) Accounting for hedges of interest rate risks(i) Hedge accounting
JBIC accounts of 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 thedate of inception of the hedges to the assessment date.
(e) Hedge accounting for foreign exchange risks
Hedge instruments used to hedge foreign exchange risks associated with various foreign currency
denominated monetary assets and liabilities are accounted for using the deferral method, in accordance with thestandard treatments 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-swap, exchange swap andsimilar transactions, hedging the foreign exchange risks of monetary assets and liabilities denominated inforeign currencies is assessed by comparing the foreign currency position of the hedged monetary assets andliabilities 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 are translated into Japanese yen at the market exchange rate prevailing at the interim fiscal periodend.

(g) Depreciation basis for fixed assets (premises and equipment)(i) Tangible fixed assets
Tangible fixed assets are depreciated on the declining balance method over their useful economic lives
except for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciatedon a straight-line method, and the applicable share of estimated annual depreciation costs for the interim
fiscal period is recorded based on the following range of useful lives.
Buildings: 38 years to 50 years
Equipment: 2 years to 20 years(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
Until the previous fiscal year, “discounts and premium on bonds and notes” had been capitalized andamortized under the straight-line method over the terms of redemption. However, in accordance with thepartial revision of “Accounting Standards for Financial Instruments “ as of August 11, 2006 (the AccountingStandards Board of Japan (“ASBJ”) Statement No.10) ,which should be applied from the interim period ending
upon or after its public announcement, JBIC adopted the revised accounting standard effective this interim
fiscal period, and Bonds and notes were stated at amortized cost (the straight line method). As a result,discounts on bond and notes in “Deferred charges on bonds and notes”, premiums in “Miscellaneous liabilities”
and “Bonds and notes” decreased by ¥2,347 million, ¥207 million and ¥2,140 million, respectively.
Discounts on bonds and notes booked on the balance sheet as of March 31, 2006 are amortized under thestraight-line method over the terms of the bonds and notes by applying the previous accounting method and theunamortized balance is directly deducted from Bonds and notes, based on the tentative measure stipulated in
the “Tentative Solution on Accounting for Deferred Assets” (ASBJ Report No.19, August 11, 2006).
Until the previous fiscal year, Bonds and notes issuance costs were capitalized and amortized over 3 years by
the Regulations of the Commercial Code of Japan. However, in accordance with the application of the “Tentative
Solution on Accounting for Deferred Assets” (ASBJ Report No.19, August 11, 2006) which should be applied
from the interim period ending upon or after its public announcement, JBIC adopted the new accounting
standard effective this interim fiscal period. As a result, Bonds and notes issuance costs in “Miscellaneous
assets” and Net income increased by ¥20 million and Amortization of bonds and notes issuance costs in “Other
operating expenses” decreased by ¥20 million.
Bonds and notes issuance costs booked on the balance sheet as of March 31, 2006 are amortized over 3 years
by applying the previous accounting method based on the tentative measure stipulated in the ASBJ report.
(i) Change in presentation on balance sheets
The appendix forms of “Banking Law Enforcement Regulations” (Ministry of Finance Ordinance No.10,1982)
have been revised by the “Cabinet Office Ordinance to Amend Part of Detailed Enforcement Regulations on
Mutual Loan Business Law and Banking Law” (Cabinet Office Ordinance No.60, April 28, 2006). In accordancewith the application of the revised “Banking Law Enforcement Regulations” effective this interim fiscal period,
presentation of account items has been changed as follows:(i) “Reserve attributable to the International Financial Account” and “Accumulated deficit” which had been
included in “Retained earnings” was presented as “Reserve attributable to the International Financial
Account” and “Accumulated deficit” in “Other retained earnings”, respectively.
(ii) The net realized and unrealized losses (gains) from hedging instruments formerly included in“Miscellaneous Assets” (“Miscellaneous liabilities”) as deferred hedge losses (gains) are presented as “Net
Deferred Hedge Gains” included in Valuation differences and Translation Adjustments.
(iii) “Premises and equipment” was divided into “Tangible fixed assets,” ”Intangible fixed assets” and“Miscellaneous assets”(iv) ”Software” was reclassified from “Miscellaneous assets” to “Intangible fixed assets”(j) Change in presentation on cash flows
Former “Net loss (gain) on sales of premises and equipment” is presented as “Net loss (gain) on sales oftangible fixed assets” following the change in description of former “Premises and equipment” on the balance
sheet into “Tangible fixed assets”, “Intangible fixed assets” and others.
Former “Expenditures on premises and equipment” is presented as “Expenditures on tangible fixed assets”
and others, and former “Proceeds from sale of premises and equipment” is presented as “Proceeds from sale oftangible fixed assets” and others.
(k)Allowance for possible loan losses
The allowance for claims on debtors who are legally bankrupt ("Bankrupt borrowers") or substantiallybankrupt ("Substantially bankrupt borrowers") is provided based on the outstanding balance after thewrite-offs described in Note 5 (i) and the deductions of the amount expected to be collected through the disposalof collateral and execution 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 ofguarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers andPotentially bankrupt borrowers is provided primarily based on the default rate, which is calculated based on theactual defaults during a certain period in the past.
The allowance for possible losses on specific overseas loans is provided based on the expected loss amounttaking 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 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.
(l)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 interim balance sheet.
Reserve for bonus payments to executive directors are included in the account.
(m) Reserve for employee retirement benefits
Reserve for employee retirement benefits represents the future payment for pension and retirement benefits
to employees and executive directors, and is accrued based on the projected benefit obligations and theestimated pension plan assets at the interim fiscal period end.
The actuarial gain or loss is recognized in the year in which it arises.
(n) Lease transactions
Finance leases that do not involve the transfer of ownership to the lessee at the end of the lease term areaccounted for as operating lease.
(o)Consumption taxes
Consumption taxes, including local consumption tax, are excluded from the transaction amounts.

(p) Significant changes in accounting policies
In accordance with newly effective ASBJ Statement No.5 “Accounting Standards for Presentation of Net
Assets on Balance Sheet” (December 9, 2005) and ASBJ Guidance No.8 “Guidance on Accounting Standards for
Presentation of Net Assets on Balance Sheet” (December 9, 2005), “Total equity” was renamed as “Net assets”
and divided into “Stockholders’ equity” and “Valuation differences and translation of adjustment”. The amountcorresponding to conventional “Total equity” was ¥1,641,187 million at the balance sheet date.
Net Assets portion of the financial statements are presented in accordance with revised “OrdinanceRegarding Interim Financial Statements”“Practical Solution on Investors’ Accounting for Limited-Liability Partnership and Limited-Liability
Companies” (Practical Issues Task Force No.21, issued on September 8, 2006) is applicable for the fiscal period
ending on or after September 8, 2006, the announcement date, and JBIC applied the new accounting
pronouncement. This accounting change had no material impact on the financial statements.

3. Cash and cash equivalents
The reconciliation between the balance of cash and cash equivalents at the end of each (interim) fiscal year
and the amount of cash and due from banks reported in the (interim) balance sheets as of September 30, 2006
and 2005, and March 31, 2006 were as follows:
September 30,

September 30,

March 31,

2006

2005

2006

2006

(In millions of(In millions of(In millions of(In millions ofyen)Cash and due from banks¥

Due from banks(*)
Cash and cash equivalents

660,055yen)¥(589,258)¥(*) Excluding Due from Bank of Japan

70,797448,285yen)¥(338,623)¥

109,662

September 30,

636,786

U.S. dollars)$(336,044)¥

300,7425,598(4,997)$601

4. Securities
Securities as of September 30, 2006 and 2005 ,and March 31, 2006 were as follows:
September 30,

September 30,

March 31,

2006

2005

2006

2006

(In millions of(In millions of(In millions of(In millions ofyen)
Equity¥yen)
12Other securities

597
¥

609

yen)
12

¥

¥

212

U.S. dollars)
12

199
¥

September 30,

$

0

387
¥

400

5
$

5

5. Loans
All of loans are loans on deeds. The amounts reported in the (interim) balance sheets as of September 30, 2006
and 2005, and March 31, 2006 were as follows:
September 30,

September 30,

March 31,

2006

2005

2006

2006

(In millions of(In millions of(In millions of(In millions ofyen)
Bankrupt loans¥

Non-accrual loansyen)47,333¥

125,628

September 30,

yen)

71,339¥177,697

47,333

U.S. dollars)$

156,454

401
1,066

Past due loans (3 months or
more)
Restructured loans
¥

-

2,714

2,714

-

136,419

248,107

141,007

1,157

309,380¥

499,859¥

347,510

$

2,624

(a)

"Bankrupt loans" refer to loans, after write-off, on which accrued interest income is not recognized as
there is substantial doubt about the ultimate collectability of either principal or interest because they are
past due for a considerable period of time or for other reasons, and to borrowers who fall into thefollowing 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 Commercial Code or other similar 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
which interest payments are deferred in order to support the borrowers’ recovery from financial
difficulties.

(c)"Past due loans (3 month or more)" are loans whose principal or interest payment is past due for threemonths 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,
the extension 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 "Past due loans (3 month or more)."(e)

The amounts of Loans indicated in the table above are the gross amounts prior to deduction of allowancefor possible loan losses.

(f)

In the event that a debtor country encounters temporary payment difficulties and requests debt
rescheduling with respect to external public debt (whose creditors are Sovereigns, Trade InsuranceInstitutions 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 Economic Restructuring Program that was agreed with the International Monetary Fund("IMF") and continues to make repayments of the debt. The principal amount of loans for which JBIC has
agreed to provide debt relief pursuant to the Paris Club agreements is as follows:September 30,

September 30,

March 31,

2006

2005

2006

2006

(In millions of(In millions of(In millions of(In millions ofyen)International Financial
Account¥yen)

355,033yen)¥¥
455,152

September 30,

U.S. dollars)$

417,943

3,011

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 international framework. Nonetheless, in order to facilitate comparison with private
financial institutions, JBIC classifies those loans to borrowers classified under the assessment as"Watchlisted" (but not "Past due loans (3 months or more)"), that were rescheduled under the Paris Clubas "Restructured loans." The amount of such loans, included in "Restructured loans" in above table, is¥21,544 million ($183million) of which ¥12,956 million ($110 million) represents original principal
attributable to the International Financial Account as of September 30, 2006, ¥90,624 million of which¥80,051 million represents original principal as of September 30, 2005 and ¥20,470 million of which¥10,890 million represents original principal as of March 31, 2006.
(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 to support 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 September 2006, of the affected countries, Indonesia and Sri Lanka had requested theParis Club for the Moratorium. The amounts rescheduled repayment period for affected countries whorequested the Moratorium were ¥9,413 million ($80 million) in the International Financial Account.
Loans related to this Moratorium are not included in the loans described in (a) to (d) above, sincelending terms has been modified based on an international agreement under this Moratorium to offer agrace period in order to support 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
with these debtors. JBIC provides commitment lines under which it lends necessary funds up to apredetermined amount, which is within the borrowers’ financing needs for the projects and up to theagreed maximum to lend, upon borrowers’ request, provided that the request meets terms andconditions for disbursement prescribed in the Loan Agreement. The total balances of unused
commitment lines as of September 30, 2006 and 2005, and March 31, 2006 were ¥1,457,406 million($12,361 million), ¥1,066,480million and ¥1,388,562 million, respectively.

(i)With respect to the claims with collateral or guarantees on debtors who are legally or substantiallybankrupt ("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 September 30, 2006 and 2005, and March 31, 2006 were ¥5,508 million ($47 million),¥5,297 million and ¥5,489 million respectively.

6. Miscellaneous assets
A part of the net earnings on 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 ¥5,984 million ($51 million) for the interim fiscal year ended September 30, 2006, ¥5,130 million
for the interim fiscal year ended September 30, 2005 and ¥19,892 million for the fiscal year ended March 31,
2006 respectively, and accounted for under Miscellaneous assets on the interim balance sheets.

7. Depreciation
Depreciation expense in First half of FY 2006 and 2005, and FY 2006 and Accumulated Depreciation as of
September 30, 2006 and 2005, and March 31, 2006 were as follows:

Depreciation ExpenseFirst Half ofFirst Half ofFirst Half of
FY2006
FY2005
FY2006
FY2006（In millions of（In millions of（In millions of（In millions of
yen）
yen）
yen）
U.S. dollars）
618 ¥
433 ¥
955 $
5
¥

September 30,
September 30,
March 31,
September 30,
2006
2005
2006
2006
（In millions of（In millions of（In millions of（In millions of
yen）
yen）
yen）
U.S. dollars）
14,673 ¥14,264 ¥14,446 $124
Accumulated Depreciation on ¥Tangible Fixed Assets

8. Bonds and notes
Based on debt assumption agreements with financial institutions, JBIC has transferred the debt repayment
obligation for certain bonds to such financial institutions. JBIC had contingent obligations in respect to thefollowing bonds as of September 30, 2006 and 2005, and March 31, 2006.
September 30,
2006（In millions ofyen）

September 30,
2005（In millions of
yen）
¥

¥
FILP Agency Bond 5
FILP Agency Bond 7
FILP Agency Bond 9
FILP Agency Bond 11

50,00060,00050,00050,000March 31,
2006
（In millions ofyen）¥

50,00060,00050,000-

September 30,
2006（In millions of
U.S. dollars）$

50,00060,00050,00050,000

424
509
424
424

9. Acceptances and guarantees
Acceptances and Guarantees as of September 30, 2006 and 2005, and March 31, 2006 were as follows:
September 30,
2006（In millions ofyen）¥
Acceptances
Guarantees¥¥
1,139,823
1,139,823 ¥September 30,
2005（In millions ofyen）¥
975,429
975,429 ¥March 31,
2006
（In millions ofyen）

September 30,
2006（In millions of
U.S. dollars）$
1,066,099
1,066,099 $

9,668
9,668

10. Assets pledged as collateral
There were no assets pledged as collateral as of September 30, 2006 and 2005 , and March 31, 2006.

11. Other extraordinary income
Other extraordinary income include Reversal of allowance for possible loan losses, ¥2,131 million ($18
million) for the interim year ended September 30, 2006

12. Reserve
Pursuant to Article 44 of JBIC Law, the reserve attributable to the International Financial Account isprovided from net earnings from the International Financial Account.

13. Lease transactions
Lease transactions in the (interim) fiscal years ended September 30, 2006, 2005 and March 31, 2006 are as
follows. There are no impairment losses for the leased asset.

(a)Finance lease transactions, excluding leases that ownership of the property are deemed to be transferredto the lessee:
・Acquisition cost, accumulated depreciation, accumulated impairment losses and net balance of leased
property as of September 30, 2006 and 2005, and March 31,2006, were as follows:
September 30,
2006（In millions ofyen）

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

September 30,
2005（In millions ofyen）March 31,
2006
（In millions ofyen）

September 30,
2006（In millions of
U.S. dollars）

¥

¥

¥

$

¥

381
313
695 ¥

390
313
704 ¥

387
313
701 $

3
3
6

¥

241
188
430 ¥

146
125
272 ¥

196
156
352 $

2
2
4

¥

139
125
265 ¥

243
188
432 ¥

191
156
348 $

1
1
2

・Future lease payment obligations as of September 30, 2006, 2005 and March 31,2006 are summarized
below:
September 30,
September 30,
March 31,
September 30,
2006
2005
2006
2006
（In millions of（In millions of（In millions of（In millions of
yen）
yen）
yen）
U.S. dollars）¥¥$¥
Due within 1 year
168
166
167
1
Due after 1 year
104
272
188
1
Total
¥
272 ¥
439 ¥
356 $
2
・

Lease payment, depreciation expenses, interest expense and impairment losses for the (interim)fiscal year ended September 30, 2006 and 2005, and March 31,2006 were as follows:
September 30,
2006（In millions of
yen）
¥

¥
Lease payment
Depreciation expense
Interest expense

September 30,
2005（In millions of
yen）

86
82
3

March 31,
2006
（In millions of
yen）
¥

87
84
5

September 30,
2006（In millions of
U.S. dollars）
$

175
167
9

1
1
0

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

Operating lease transactions:・ Future lease payment obligations as of September 30, 2006 and 2005, and March 31,2006 weresummarized below:
September 30,
2006（In millions ofyen）¥

Due within 1 year
Due after 1 year
Total

¥

¥
1
0
1 ¥

September 30,
2005（In millions of
yen）
¥
10
1
12 ¥

March 31,
2006
（In millions of
yen）
$
4
1
5 $

September 30,
2006（In millions of
U.S. dollars）
00014. Derivative transactions
Notes to derivative transactions in the interim fiscal period ended September 30, 2006 are as follows:(a) Interest rate-related transactions
Gains or losses arising from changes in fair value of interest rate-related derivatives are not included in theinterim statements of operations.
Hedge accounting is applied to all the interest rate-related derivative transactions.
(b)Currency-related transactions
Gains or losses arising from changes in fair value of currency-related derivatives are not included in theinterim statements of operations.
Hedge accounting is applied to all currency-related derivative transactions.

(c) Equity-related transactions
Not applicable(d) Bond-related transactions
Not applicable(e) Commodity-related transactions
Not applicable(f) Credit derivatives transactions
Not applicable

Notes to derivative transactions in the interim fiscal period ended September 30, 2005 are as follows:(a) Interest rate-related transactions
Gains or losses arising from changes in fair value of interest rate-related derivatives are not included in theinterim statements of operations.
Hedge accounting is applied to all interest rate-related derivative transactions.
(b) Currency-related transactions
Gains or losses arising from changes in fair value of currency-related derivatives are not included in theinterim statements of operations.
Hedge accounting is applied to all currency-related derivative transactions.
(c) Equity-related transactions
Not applicable(d) Bond-related transactions
Not applicable(e) Commodity-related transactions
Not applicable(f) Credit derivatives transactions
Not applicable
Notes to derivative transactions in the fiscal year ended March 31, 2006 are as follows:(a) Interest rate-related transactions
Gains or losses arising from changes in fair value of interest rate-related derivatives are not included in thestatements of operations.
Hedge accounting is applied to all interest rate-related derivative transactions.
(b) Currency-related transactions
Gains or losses arising from changes in fair value of currency-related derivatives are not included in thestatements of operations.
Hedge accounting is applied to all currency-related derivative transactions.

(c) Equity-related transactions
Not applicable(d) Bond-related transactions
Not applicable(e) Commodity-related transactions
Not applicable(f) Credit derivatives transactions
Not applicable

15. Market value of securities
Notes to market value of securities as of September 30 ,2006 are as follows:(a) Held-to-maturity debt securities
Not applicable(b) Available-for-sale security with market value
Not applicable(c) Held-to-maturity debt securities and available-for-sale securities whose market value is not readily determinable
are as follows:
September 30,2006（In millions ofyen）

September 30,2006（In millions of
U.S. dollars）¥
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
Others
Total

$
-

-

12
250
346
460,800
461,409 $

¥

0
2
3
3,909
3,914

Notes to market value of securities as of September 30, 2005 are as follows:(a) Held-to-maturity debt securities
Not applicable(b) Available-for-sale securities with market value
Not applicable(c) Held-to-maturity debt securities and available-for-sale securities whose market value is not readily determinable
are as follows:
September 30,2005（In millions ofyen）¥
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
147
52
212

Notes to market value of securities as of March 31, 2006 are as follows:(a) Held-to-maturity debt securities
Not applicable(b) Available-for-sale securities with market value
Not applicable(c) Held-to-maturity debt securities and available-for-sale securities whose market value is not readily determinable
are as follows:
March 31,2006（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
Others
Total

-

¥

12
250
136
133,800
134,200