BALANCE SHEETSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation Account

AssetsCash and due from banks
Securities
Loans
Miscellaneous assets
Premises and equipment
Deferred charges on bonds and notes
Allowance for possible loan losses
Total assets

Liabilities and equity
Liabilities
Bonds and notes
Borrowings
Miscellaneous liabilities
Allowance for employee bonuses
Allowance for employee retirement benefits
Total liabilities
EquityCapital of the Overseas Economic Cooperation AccountReserve of the Overseas Economic Cooperation AccountAccumulated deficit at the end of the current year
Total equity
Total liabilities and equity

In millions of yen

In millions of yen

In millions of dollars

March 31, 2003

March 31, 2002

March 31, 2003

59,756 \122,912
10,425,582
142,7267,665
17(181,011)
10,577,649\\\

49,823 $122,674
11,024,333
119,9367,904
22(296,684)
11,028,009
$

497
1,023
86,7351,187
64
0(1,506)88,000In millions of yen

In millions of yen

In millions of dollars

March 31, 2003

March 31, 2002

March 31, 2003

\

\

\

\
\

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

25,0004,611,717
20,234286
6,874
4,664,112

6,504,344
280,719(871,526)
5,913,536
10,577,649

\

\

\

\
\

25,0004,699,830
19,142226
6,089
4,750,288$

208
38,367168
357
38,803

6,285,244 $
182,296(189,819)
6,277,721 $
11,028,009$

54,113
2,335(7,251)49,19788,000$STATEMENTS OF OPERATIONSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountIncomeInterest income
Interest on loans
Interest and dividend income on securities
Interest on due from banks
Fees and Commissions
Other operating income
Foreign exchange gains
Other ordinary income
Reversal of allowance for possible loan losses
Recovery of Written-off Claims
Reversal of allowance for possible investment losses
Profits on sales of premises and equipment
Total income
Expenses
Interest expenses
Interest on bonds and notes
Amortization of discounts on bonds and notes
Interest on borrowings
Fees and Commissions
Other operating expenses
Foreign exchange losses
OthersGeneral and administrative expenses
Other ordinary expenses
Write-off of equities, securities, etc.
Others
Losses on disposal of premises and equipment
ODA-loan related losses
Total expense
Net (loss) income

In millions of yen

In millions of yen

In millions of dollars

Fiscal 2002

Fiscal 2001

Fiscal 2002

¥

¥
¥

¥
¥

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

250,598
247,935
2,659
3
606
71
130,4053,960
9385,652
140,122740
5139,377
1,882
192
190
1
10,25649
49
6816,428
968,936(583,284)

¥

¥
¥

¥
¥

273,183
270,407
2,761
13
688
91
91
281
34,316
1,631
2
310,193
157,389740
5
156,644
1,536
1
1
9,758
931
759
171
26
169,643
140,550

$

$
$

$
$

2,085
2,063
22
0
5
0
1,085
33
0
3,208
1,166
6
0
1,160
16
2
2
0
85
0
0
0
6,792
8,061
(4,853)

STATEMENTS OF CASH FLOWSJAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation AccountCash flows from operating activities
Net (loss) income¥
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 borrowings
Net decrease (increase) in due from banks (excluding cash equivalents)
Interest received
Interest paid
Others, net
Net cash used in operating activities¥
Cash flows from investing activities
Purchases of securities¥
Sales of securities
Expenditures on premises and equipment
Proceeds from sales of premises and equipment
Net cash (used in) provided by investing activities¥
Cash flows from financing activities
Proceeds from issuance of capital from Government¥
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 fiscal year¥
Cash and cash equivalents at the end of the fiscal year¥
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

Fiscal 2002

Fiscal 2001

Fiscal 2002

(583,284) ¥466(115,673)
60
785(250,598)
140,12249
177(2)598,750(88,113)46,311
228,002(140,074)
688(162,333) ¥140,550 $489(34,316)(1,721)226
187(273,183)
157,389
800
(105)
24
(306,921)(83,481)
18,041
255,258(157,267)45(283,985) $(4,853)4(962)
0
7(2,085)
1,166
0
1
(0)
4,981
(733)
385
1,897
(1,165)
6(1,351)(474) ¥
189
(239)
15
(508) ¥

(1,240) $
1,833
(502)
19
109 $

(4)
2
(2)
0
(4)

219,100 ¥219,100 ¥(0) ¥56,257 ¥2,615 ¥
58,873 ¥284,500
284,500
0
624
1,991
2,615

$
$
$
$
$
$

1,823
1,823
0
468
22
490

STATEMENT OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION

In millions of yen

Balance at March 31, 2002

Reserve ofCapital of the Reserve of
the Overseas AccumulatedtheCapital of the Overseas
deficit at theInternational Economic
International Economic
Cooperation end of the
Cooperation Financial
Financialcurrent year Total Equity
Account
Account
Account
Account\985,500\6,285,244\564,230\182,296(\179,183)\7,838,088

Transfer from net
earnings accounted
under the JBIC law toreserves

44,10598,422

Payment to National
TreasuryIssuance of capital from
Government-(44,105)(44,105)

219,100

219,100

Net income
Balance at March 31, 2003

(142,528)\985,500\6,504,344\608,336\280,719(495,051)(495,051)(\860,868)\7,518,031(30,246)-

260,051-(30,246)(30,246)\199,559(\30,246)

Appropriations:
Transfer from net
earnings to reserve of
the International
Financial Account30,246

Transfer from reserve of
the Overseas Economic
Cooperation Account(260,051)

Payment to National
Treasury
Total
UnappropriatedAccumulated deficit\30,246

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

(260,051)(\661,309)

STATEMENT OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION
In millions of dollars

Balance at March 31, 2002

Reserve ofCapital of the Reserve of
the Overseas AccumulatedtheCapital of the Overseas
deficit at theInternational Economic
International Economic
Cooperation end of the
Cooperation Financial
Financial
Account
Account
current year Total Equity
Account
Account$8,199$52,290$4,694$1,516($1,491)$65,208

Transfer from net
earnings accounted under
the JBIC law to reserves

367

819

Payment to National
TreasuryIssuance of capital from
Government

-

(367)

(367)

1,823

1,823

Net income
Balance at March 31, 2003

(1,186)$8,199$54,113$5,061$2,335(4,118)(4,118)($7,162)$62,546

(252)

-

2,164

-

(252)

(252)

$1,660($252)

Appropriations:
Transfer from net
earnings to reserve of theInternational Financial
Account

252

Transfer from reserve of
the Overseas Economic
Cooperation Account(2,164)

Payment to National
Treasury
Total
UnappropriatedAccumulated deficit$252

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

(2,164)($5,502).

STATEMENT OF EQUITYJAPAN BANK FOR INTERNATIONAL COOPERATION

In millions of yen

Balance at March 31, 2001

Capital of theSpecialReserve ofCapital of the Overseas
Reserve of the Reserve of the the Overseas AccumulatedInternational Economic
International International Economic
deficit at the
Financial
Cooperation Financial
Financial
Cooperation end of the
Account
Account
Account
Account
Account
current year Total Equity\985,500\6,000,744\523,287\5,423\125,602(\302,367)\7,338,190

Transfer from net
earnings accounted under
the JBIC law to reserves

40,943

Payment to National
Treasury

11

56,694(5,435)Issuance of capital from
Government-(40,944)(46,379)

284,500

284,500

Net income
Balance at March 31, 2002

(97,648)\985,500\6,285,244\564,230-\182,296

261,776

261,776(\179,183)\7,838,088(44,105)-(98,422)-(44,105)(44,105)(\186,633)(\44,105)

Appropriations:
Transfer from net
earnings to reserve of theInternational Financial
Account

44,105

Transfer from net
earnings accounted under
the JBIC law to reserve of
the Overseas Economic
Cooperation Account98,422

Payment to National
Treasury
Total
UnappropriatedAccumulated deficit\44,105

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

\98,422(\365,817)

NOTES TO FINANCIAL STATEMENTS
JAPAN BANK FOR INTERNATIONAL COOPERATION
Overseas Economic Cooperation 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 Financial Reporting 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¥120.20=$1.00, the exchange rate as of March 31, 2003, 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. Significant Accounting Policies(a) Cash and cash equivalents"Cash and cash equivalents” as stated in the statements of cash flows consists of cash in 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 at costbased on a moving average cost valuation.
(c) Depreciation basis for fixed assets(i) Premises and equipment
Premises and equipment are depreciated on the declining 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 years(ii) Software
Software used by JBIC is amortized on the straight-line basis over its useful life (5 years).
(d) Method of amortization for deferred charges"Discounts on Bonds and Notes" are amortized over terms of redemption.
(e) 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 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 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).
Foreign currency differences arising from futures currency transactions are recognized on the balance sheets on
a net basis.

(f) Allowance 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 (h) 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.
(g) Allowance for employee 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 bounuses to executive directors
included in as of March 31, 2002, are not included in as of March 31, 2003.
(h) 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 fiscal year end, based on the projected benefit obligations,and the estimated pension plan asset amount at the fiscal year end. The method of accounting for prior service
cost and net actuarial gains/losses is as follows:
Prior service cost is charged to net income of the year.
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.
(i) Consumption tax
Consumption tax including local consumption tax is excluded from the transaction amounts.

3. Cash and cash equivalents
The reconciliation between the balance of cash and cash equivalents at the end of each fiscal year and the amountof cash and due from banks reported in the balance sheets as of March 31, 2003 and 2002 are as follows:

Cash and Due from BanksMarch 31, 2003

March 31, 2002

(In millions of yen)

(In millions of yen)¥

59,756Due from Banks (*)

¥

(883)

49,823

March 31, 2003
（In millions of dollars）$

497(47,207)(7)

Cash and Cash
Equivalents¥

58,873

¥

2,615

$

490

(*) Excluding Due from Bank of Japan

4. Securities
Securities as of March 31, 2003 and 2002 are as follows:
March 31, 2003
EquityOther Securities

March 31, 2002

March 31, 2003

（In millions of dollars）(In millions of yen)
(In millions of yen)¥
122,269 ¥
121,979 $
1,017
642
695
5
¥
122,912 ¥122,674 $1,022

5. Loans
All of Loans are loans on deeds. The amounts reported in the balance sheets as of March 31, 2003 and 2002 are as
follows:

Bankrupt Loans
Non-accrual Loans
Past Due Loans (3 Months or More)
Restructured Loans

March 31, 2003
(In millions of yen)\
90,596
51,186\
141,783

March 31, 2002
(In millions of yen)\
381,146
81,880900\
463,928

March 31, 2003
(In millions of dollars)
$
754
426
$
1,180

(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 of Japan,
or who have had their transactions with the promissory note clearinghouse suspended, or loans to borrowers 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” underself-assessment of asset quality.
(c) "Past Due Loans (3 Months 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 of claims) in order toassist or facilitate restructuring processes of the obligors in financial difficulties, and are other than "Bankrupt
Loans", "Non-accrual Loans", and "Past Due Loans (3 Months 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:

March 31, 2003

March 31, 2002

March 31, 2003

(In millions of yen)

(In millions of yen)

(In millions of dollars)

Overseas Economic Cooperation Account ￥1,203,975 ￥

1,265,900 $

10,016

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 ofbilateral 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 fiscal year 2002 which is covered by 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 March 31, 2003 and 2002 are ¥4,221,727
million ($35,123 million) and ¥4,424,721 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 March
31, 2003 and 2002 are ¥105 million ($1 million) and ¥105 million respectively.

6. Miscellaneous assets
Miscellaneous assets as of March 31, 2003 are as follows:(a) Accrued income"Accrued income” includes ¥140,769 million($1,171 million) of accrued interest on
loans and others.

(b) Other assets"Other assets" includes ¥148 million($1 million) of suspense payments and others.

Miscellaneous assets as of March 31, 2002 are as follows:(a) Accrued income"Accrued income” includes ¥118,201 million of accrued interest on loans and others.

(b) Other assets"Other assets" includes ¥10 million of suspense payments and others.

7. Premises and equipment
Premises and equipment as of March 31, 2003 and 2002 are as follows:

March 31, 2003
（In millions of yen）
Tangible Fixed Assets
Land
Buildings

Less -

$

3,054
7,032

3,016
6,933

25
59

1,241
90

1,275
86

10
1

Total
Accumulated Depreciation¥

11,418 ¥4,353

11,312 $
4,060

95
36

Net Book Value¥

7,065 ¥

7,252 $

59

Intangible Fixed Assets
SoftwareLess -¥¥

Equipment
Construction in Progress

March 31, 2002
March 31, 2003
（In millions of yen） (In millions of dollars)

Guarantee deposit
Total
Accumulated Depreciation
Net Book Value

¥

¥

¥
¥

$

411

387

3

334
745 ¥
145
599 ¥

331
718 $
66
652 $

3
6
1
5

8. Deferred charges on bonds and notes
Deferred charges on bonds and notes as of March 31, 2003 and 2002 are as follows:
March 31, 2003
March 31, 2002
March 31, 2003
（In millions of yen） （In millions of yen） （In millions of dollars）¥¥$
Deferred discount on bonds and notes
17
22
0
¥

17 ¥

22 $

0

9. Allowance for possible loan losses
Allowance for possible loan losses as of March 31, 2003 and 2002 are as follows:
March 31, 2003
（In millions of yen）¥
General Allowance for Possible Loan Losses
Specific Allowance for Possible Loan Losses
Allowance for Possible Losses on SpecificOverseas Loans¥

March 31, 2002
（In millions of yen）

March 31, 2003
（In millions of dollars）¥$

108,878
72,133-

238,865
57,819
-

906
600
-

181,011 ¥296,684 $1,506

10. Bonds and notes
Bonds and notes as of March 31, 2003 and 2002 are as follows:
March 31, 2003 March 31, 2002 March 31, 2003
Currency andAmounts
Interest
Description of Bonds andIssue date
March
Rate(%)
notes
31,2003(In millions)

Maturitydate（In millions of （In millions of （In millions of
yen）
yen）
dollars）¥

JPY 25,000¥
25,000208

25,000 ¥25,000$208

2.9～3.0 December
2005November
2006

Overseas Economic December
1995Cooperation Fund
Bonds guaranteed by November
1996
Japan 8,9¥

Bonds and notes with redemption of 5 years or less are shown in the following table.
Fiscal 2003
2004
2005
2006
2007

$

25,000￥- million
15,00010,000-$- million
125
83-

11. Borrowings
Borrowings as of March 31, 2003 and 2002 are as follows:
March 31, 2003

March 31, 2002

March 31, 2003

Averageinterest Due date ofrate(%) repayment （In millions of yen） （In millions of yen） (In millions of dollars)Long-term borrowings
Borrowings
fromtheGovernment Fund for
Fiscal Investment and
Loan Program
BorrowingfromtheGovernment Post OfficeLife Insurance Special
Account

¥

¥
2.76

2.42

September
2003December
2017

¥

$

4,507,637

4,571,520

37,501

104,080

128,310866

4,611,717 ¥

4,699,830 $

38,367Long-term borrowings with maturities within 5 years outstanding as of March 31, 2003 are as follows:
Fiscal 2003
2004
2005
2006
2007

￥

540,310 million
534,348
524,038
492,387
433,953$

4,495 million
4,445
4,360
4,096
3,610

12. Miscellaneous liabilities
Miscellaneous liabilities as of March 31, 2003 are as follows:(a) Accrued expenses"Accrued expenses" includes ¥17,634million ($147 million) of accrued interest on
borrowings and ¥22 million ($0 million) of accrued interest on bonds and notes andothers.

(b) Other liabilities"Other liabilities" includes ¥2,299million ($19 million) of suspense receipts andothers.

Miscellaneous liabilities as of March 31, 2002 are as follows:(a) Accrued expenses"Accrued expenses" includes ¥17,591 million of accrued interest on borrowings and(b) Other liabilities"Other liabilities" includes ¥1,341 million of suspense receipts and others.

¥22 million of accrued interest on bonds and notes and others.

13. Employee Retirement Benefits
JBIC has defined benefit pension plans which consist of welfare pension fund plan and lump-sum severance indemnity
plan.
(a) The Funded Status of the Pension Plans
March 31, 2003
(In millions of yen)

Disposition\
Projected Benefit Obligation
Fair Value of Plan 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
Prepaid Pension Cost
Allowance for Employee Retirement Benefits(A)(B)(C)=(A)+(B)
(D)
(E)
(F)
(G)=(C)+(D)+(E)+(F)(H)(G)-(H)March 31, 2002
(In millions of yen)\
(8,487)
1,613(6,874)‐‐‐(6,874)‐(6,874) \\$(7,824)
1,735(6,089)‐‐‐(6,089)‐(6,089) $March 31, 2003
(In millions of dollars)
(71)
14
(57)
‐
‐
‐
(57)
‐
(57)

(Note) The above Projected Benefit Obligations include a portion in which the pension fund acts for the government welfare program.

(b) Component of Pension Cost
March 31, 2003
(In millions of yen)

Disposition\
Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Prior Service Cost
Amortization of Net Actuarial Gains/Losses
Amortization of Net Obligation at Transition
Other Costs
Net Pension Cost

March 31, 2002
(In millions of yen)
$
425
190
(70)
‐
192
‐
‐
737 $

\
359
193
(26)
(114)
825
‐
‐
1,238 \\(c) Principal Assumptions Used
March 31,2003

March 31,2002

Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Projected Benefits to Periods of Services

2.0%
1.5%
Straight-line basis

2.5%
4.0%
Straight-line basis

Amortization Period of Prior Service Costs

Prior service cost is
charged to net
income of the year-

Amortization Period of Actuarial Gains/Losses

Gains/losses arecharged to net
income of the year

Gains/losses arecharged to net
income of the year--

Amortization Period of Net Obligation at Transition

March 31, 2003
(In millions of dollars)
3
1
(0)
(1)
7
‐
‐
10

14. Assets Pledged as Collateral
There were no assets pledged as collateral as of March 31, 2003 and 2002.

15. ODA-loan related losses
The Government of Japan has provided debt relief under TDB (the Trade and Development Board) scheme in theform of grant aid for eligible ODA loan recipients in exchange for repayments of ODA loans based on the resolutionof TDB of the UNCTAD in 1978. Therefore, JBIC's ODA Loans to eligible TDB countries had been substantiallysecured by matching grant aid for debt relief provided by the Government of Japan in the amount equivalent 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 fiscal year 2002 which is covered by TDB scheme and allamounts 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").

16.Accnmulated deficit
JBIC accounts for "Transfer from Reserve of the Overseas Economic Cooperation Account" for the fiscal year
ended March 31, 2003, pursuant to Article 44 of the JBIC Law, the related law and the related cabinet order.
Therefore, losses carried forward to the following fiscal year are simply the sum of “Accumulated deficit at the
fiscal year ended March 31, 2003” and statutory appropriation of net earnings as stipulated by the related law of
JBIC. Deficit, which represents shortage of net assets from capital of the Overseas Economic Cooperation Accountas of March 31, 2003, was ¥590,807million($4,915 million).

17. Leased Transactions
Leased transactions in the fiscal year ended March 31, 2003 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
Within 1 year

More than 1 year

Total

(In millions of yen)

¥3

¥0

¥4

(In millions of dollars)

$0

$0

$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
Within 1 year

(In millions of yen)

¥8More than 1 year
¥3

Total
¥12

18. Derivative Transactions
There were no derivative transactions in the fiscal year ended March 31, 2003 and 2002.

19. Market Value of Securities
Notes to market value of securities as of March 31, 2003 are as follows:
The followings includes "Securities" and negotiable due from banks in "Cash and due from banks"(a) Trading Securities
Not applicable(b) Held-to-maturities Debt Securities
Not applicable(c) Available-for-sale Securities with market value
Not applicable(d) Held-to-maturities 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
are as follows
March 31,2003（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
¥

$
122,912
119,084
3,184
642
122,912 $March 31, 2003
（In millions of dollars）
1,023
991
27
5
1023

(g) Change of Classification of Securities
Not applicable(h) Redemption Schedule of Available-for-sale Securities with Maturity
Not applicable(i) Money Held in Trust
Not applicable(j) Net Unrealized Gain (Loss) on Available-for-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) Trading Securities
Not applicable(b) Held-to-maturities Debt Securities
Not applicable(c) Available-for-sale Securities with market value
Not applicable(d) Held-to-maturities 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
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 Available-for-sale Securities with Maturity
Not applicable(i) Money Held in Trust
Not applicable(j) Net Unrealized Gain (Loss) on Available-for-sale Securities
Not applicable

122,674
119,134
2,844
695
122,674