JBIC PROVIDES CREDIT TO IMPROVE BRAZIL' S POSTAL SERVICE
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today at its Head Office in Tokyo a loan agreement totaling 4.8 billion yen with Empresa Brasileira de to help improve Brazil's postal service. This loan is co-financed with The Fuji Bank, Limited, with JBIC covering 2.9 billion yen or 60% of the total amount.
2. The postal situation in Brazil is currently undergoing a substantial change. The volume of letters and other postal matter has expanded by about 250% in the past decade. To respond to this rapidly growing demand, improvement in the mail service is urgently required. Therefore, the Brazilian Ministry of Communications drew up in November, 1995, the Recovery and Expansion Program for Telecommunications and Postal Systems (PASTE). Under this program various investment plans, including a plan to increase the number of fixed phone lines, and a plan to introduce automated mail systems, are being implemented. Also, ECT has been recently making investments to generally improve the mail service.
3. The proceeds of this loan will be used to purchase equipment and services from Japan that are necessary for ECT to set up automated mail systems at 12 main post offices in Brazil. The Japanese exporter is Marubeni Corp. and the Japanese manufacturer is NEC Corp.
4. The credit is expected not only to help promote exports to Brazil by the Japanese firms, but also to make a large contribution to the improvement of mail services in Brazil.