Japan looking at providing financing framework for defense exports


Japanese defense companies participate in a defense exhibition. Photo c/o The Diplomat.

The Japanese Government was reported to be considering a formal system that will provide financing to support the export of defense systems and equipment.

According to reports by British defense media outlet Jane’s, the Japanese Government could be looking at providing low-interest loans to countries to allow them to purchase Japanese defense products.

The state-owned Japan Bank for International Cooperation (JBIC) is eyed to provide loans to export customers, while the Nippon Export and Investment Insurance (NEXI) would provide support for the loans.

Japan has only started exporting defense materiel recently, as part of easing of restrictions in arms exports and transfer to other countries. 

While Japan has been exporting parts and subcomponents for weapon systems from other countries, it has only allowed the export of complete systems in the past few years.

The Philippines was reportedly the first country to acquire Japanese defense systems, ordering 4 air defense and surveillance radar systems for its air force. 

Other Asian countries like Indonesia and Thailand have shown interest in Japanese defense equipment as well, with Indonesia is close discussions for the potential joint construction of frigates for the Indonesian Navy.

Japan has been pushing forward to improve its defense relations with international partners, especially with Southeast Asian partners. 

This includes the export and transfer of defense equipment, which was outlined in the “Defense of Japan 2020” White Paper released by the Japanese Government.

[1] Jane’s

Japan looking at providing financing framework for defense exports Japan looking at providing financing framework for defense exports Reviewed by Asia Pacific Defense Journal on May 19, 2021 Rating: 5

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