JICA's Commitment to Sustainable Development
jica
JICA at a
Glance
Business
Activities
Funding
Activities
Risk Management
Risks related to ODA Loans
•
Sovereign risk, which constitutes a major
part of the credit risk for ODA Loans, is
evaluated by utilizing information from
recipient governments, as well as
multilateral institutions including the IMF
and the World Bank
• Though JICA's exposure can concentrate
in a limited number of countries, the ODA
Loan portfolio is well-diversified
• The ODA Loan portfolio is affected by
political and economic changes of
borrowing countries especially because of
its extended tenors
Market Risk Management
•
•
Enhanced capacity to absorb interest rate
risk on the back of capital injections
from the Government of Japan
Market risk hedge includes interest rate
swaps as well as cross currency swaps,
securing collateral when necessary
JICA's Bonds
- Social /
Sustainability
Bond
Framework
Overview
Recent
Highlights
Credit Risk Management
•
•
Periodical reviews of borrower's credit
based on internal credit rating system
Prudent self-assessment of asset
portfolio
• With the credit risk management above,
write-offs and loan loss allowance are
managed in a proper manner
Liquidity Risk Management
Management of its cash flows includes
securing multiple sources of funds such
as Agency Bonds and borrowing under
Fiscal Investment and Loan Program
Appendix
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