Japan Finance 18-K Annual report (foreign governments)

Exhibit 4

ChuoAoyama PricewaterhouseCoopers
	Kasumigaseki Bldg. 32nd Floor 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6088, Japan

Report of Independent Auditors

To the Governor of

Japan Bank for International Cooperation

We have audited the accompanying balance sheets of Japan Bank for International Cooperation as of March 31, 2005 and 2004, and the related statements of operations, equity, and cash flows for the years then ended, all expressed in Japanese Yen. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Japan Bank for International Cooperation as of March 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.

The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translated on the basis set forth in Note 1 to the accompanying financial statements.

ChuoAoyama PricewaterhouseCoopers

Tokyo, Japan

June 24, 2005

* Please note that the original of this report has been separately kept by the bank.

BALANCE SHEETS

JAPAN BANK FOR INTERNATIONAL COOPERATION

	In millions of yen March 31, 2005			In millions of yen March 31, 2004			In millions of U.S. dollars March 31, 2005
Assets
Cash and due from banks (Note 3)	¥	170,029		¥	217,328		$	1,583
Securities (Notes 4 and 20)		119,980			120,514			1,117
Loans (Note 5)		19,187,414			19,306,245			178,670
Miscellaneous assets (Note 6)		599,982			704,284			5,587
Premises and equipment (Note 7)		26,186			27,178			244
Deferred charges on bonds and notes (Note 8)		3,719			2,707			35
Customers’ liabilities for acceptances and guarantees		899,389			724,924			8,375
Allowance for possible loan losses (Note 9)		(353,664	)		(263,425	)		(3,293	)
Total assets	¥	20,653,038		¥	20,839,757		$	192,318
	In millions of yen March 31, 2005			In millions of yen March 31, 2004			In millions of U.S. dollars March 31, 2005
Liabilities and equity
Liabilities
Bonds and notes (Note 10)	¥	1,776,254		¥	1,561,373		$	16,540
Borrowings (Note 11)		9,559,735			10,392,925			89,019
Miscellaneous liabilities (Note 12)		224,079			246,191			2,087
Allowance for bonus payments		960			918			9
Allowance for employee retirement benefits (Note 13)		17,276			17,429			161
Acceptances and guarantees (Note 14)		899,389			724,924			8,375
Total liabilities		12,477,695			12,943,761			116,191
Equity
Capital attributable to the International Financial Account		985,500			985,500			9,177
Capital attributable to the Overseas Economic Cooperation Account		6,891,244			6,704,644			64,170
Reserve attributable to the International Financial Account (Note 17)		676,258			638,582			6,297
Reserve attributable to the Overseas Economic Cooperation Account (Note 17)		85,490			20,667			796
Accumulated deficit		(463,150	)		(453,398	)		(4,313	)
Total equity		8,175,343			7,895,995			76,127
Total liabilities and equity	¥	20,653,038		¥	20,839,757		$	192,318

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

STATEMENTS OF OPERATIONS

JAPAN BANK FOR INTERNATIONAL COOPERATION

	In millions of yen FY 2004		In millions of yen FY 2003		In millions of U.S.dollars FY 2004
Income
Interest income	¥	488,620	¥	519,452	$	4,550
Interest on loans		458,984		467,635		4,274
Interest and dividend income on securities		3,638		2,280		34
Interest on due from banks		2,458		1,609		23
Interest on swaps (net)		23,538		47,926		219
Fees and Commissions		6,334		6,746		59
Other operating income		13,152		309		122
Foreign exchange gains		1,662		—		15
Gains on derivative instruments		11,353		—		106
Others		136		309		1
Other ordinary income		202		494		2
Grant from general account (Note 16)		30,000		30,000		279
Recovery of Written-off Claims		1,406		3,084		13
Profits on sales of premises and equipment		21		689		0
Total income		539,738		560,777		5,025
Expenses
Interest expenses		284,575		305,501		2,650
Interest on bonds and notes		64,003		61,145		596
Interest on borrowings		220,571		244,355		2,054
Fees and Commissions		5,668		5,754		53
Other operating expenses		2,211		5,123		20
Foreign exchange losses		—		4,256		—
Amortization of bonds and notes issuance costs		990		651		9
Others		1,220		216		11
General and administrative expenses		22,963		24,435		214
Other ordinary expenses		93,886		12,036		874
Provision for allowance for possible loan losses		90,992		9,921		847
Write-off of loans		11		122		0
Write-off of equities and securities, etc.		2,867		1,924		27
Others		14		67		0
Losses on disposal of premises and equipment		9		14		0
Total expense		409,315		352,866		3,811
Net income	¥	130,423	¥	207,910	$	1,214

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

STATEMENTS OF CASH FLOWS

JAPAN BANK FOR INTERNATIONAL COOPERATION

	In millions of yen FY 2004			In millions of yen FY 2003			In millions of U.S. dollars FY 2004
Cash flows from operating activities
Net income	¥	130,423		¥	207,910		$	1,214
Depreciation and amortization		1,355			1,461			13
Increase (decrease) in allowance for possible loan losses		90,239			(44,737	)		840
Increase in allowance for bonus payments		42			163			0
Decrease in allowance for employee retirement benefits		(152	)		(660	)		(1	)
Interest income		(488,620	)		(519,452	)		(4,550	)
Interest expenses		284,575			305,501			2,650
Net loss on securities		2,875			1,992			27
Foreign exchange (gain) loss		(60,081	)		299,725			(559	)
Net gain on sales of premises and equipment		(11	)		(674	)		(0	)
Net decrease in loans		213,818			316,955			1,991
Net increase in bonds and notes		179,225			54,212			1,669
Net decrease in borrowings		(833,190	)		(825,756	)		(7,759	)
Net (increase) decrease in due from banks (excluding cash equivalents)		(33,909	)		87,302			(316	)
Interest received		506,306			630,355			4,715
Interest paid		(291,548	)		(321,621	)		(2,715	)
Others, net		68,579			(319,839	)		639
Net cash used in operating activities		(230,073	)		(127,160	)		(2,142	)
Cash flows from investing activities
Purchases of securities		(2,527	)		(262	)		(23	)
Sales of securities		693			635			6
Expenditures on premises and equipment		(184	)		(842	)		(2	)
Proceeds from sales of premises and equipment		92			858			1
Net cash (used in) provided by investing activities		(1,927	)		389			(18	)
Cash flows from financing activities
Proceeds from issuance of capital from Government		186,600			200,300			1,737
Payment to National Treasury		(36,547	)		(38,459	)		(340	)
Net cash provided by financing activities		150,052			161,840			1,397
Effect of exchange rate changes on cash and cash equivalents		0			(0	)		0
Net (decrease) increase in cash and cash equivalents		(81,947	)		35,068			(763	)
Cash and cash equivalents at the beginning of the period		152,738			117,669			1,422
Cash and cash equivalents at the end of the period	¥	70,790		¥	152,738		$	659

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

												In millions of yen
	Capital attributable to the International Financial Account		Capital attributable to the Overseas Economic Cooperation Account		Reserve attributable to the International Financial Account		Reserve attributable to the Overseas Economic Cooperation Account		Accumulated deficit			Total Equity
Balance at March 31, 2004	¥	985,500	¥	6,704,644	¥	638,582	¥	20,667	¥	(453,398	)	¥	7,895,995
Transfer from net earnings accounted under the JBIC Law to reserve		—		—		37,675		64,823		(102,498	)		—
Payment to National Treasury		—		—		—		—		(37,675	)		(37,675	)
Issuance of capital from Government		—		186,600		—		—		—			186,600
Net income		—		—		—		—		130,423			130,423
Balance at March 31, 2005	¥	985,500	¥	6,891,244	¥	676,258	¥	85,490	¥	(463,150	)	¥	8,175,343
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		—		32,889		25,833		(58,723	)		—
Payment to National Treasury		—		—		—		—		(32,889	)		(32,889	)
Total	¥	—	¥	—	¥	32,889	¥	25,833	¥	(91,613	)	¥	(32,889	)
Unappropriated Accumulated deficit	¥	—	¥	—	¥	—	¥	—	¥	(554,763	)	¥	—

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

									In millions of dollars
	Capital attributable to the International Financial Account		Capital attributable to the Overseas Economic Cooperation Account		Reserve attributable to the International Financial Account		Reserve attributable to the Overseas Economic Cooperation Account		Accumulated deficit			Total Equity
Balance at March 31, 2004	$	9,177	$	62,432	$	5,946	$	192	$	(4,222	)	$	73,525
Transfer from net earnings accounted under the JBIC Law to reserve		—		—		351		604		(955	)		—
Payment to National Treasury		—		—		—		—		(351	)		(351	)
Issuance of capital from Government		—		1,738		—		—		—			1,738
Net income		—		—		—		—		1,215			1,215
Balance at March 31, 2005	$	9,177	$	64,170	$	6,297	$	796	$	(4,313	)	$	76,127
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		—		306		241		(547	)		—
Payment to National Treasury		—		—		—		—		(306	)		(306	)
Total	$	—	$	—	$	306	$	241	$	(853	)	$	(306	)
Unappropriated Accumulated deficit	$	—	$	—	$	—	$	—	$	(5,166	)	$	—

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

	In millions of yen
	Capital attributable to the International Financial Account		Capital attributable to the Overseas Economic Cooperation Account		Reserve attributable to the International Financial Account		Reserve attributable to the Overseas Economic Cooperation Account			Accumulated deficit			Total Equity
Balance at March 31, 2003	¥	985,500	¥	6,504,344	¥	608,336	¥	280,719		¥	(860,868	)	¥	7,518,031
Transfer from net earnings accounted under the JBIC Law to reserve		—		—		30,246		—			(30,246	)		—
Transfer from reserve to net earnings accounted under JBIC Law		—		—		—		(260,051	)		260,051			—
Payment to National Treasury		—		—		—		—			(30,246	)		(30,246	)
Issuance of capital from Government		—		200,300		—		—			—			200,300
Net income		—		—		—		—			207,910			207,910
Balance at March 31, 2004	¥	985,500	¥	6,704,644	¥	638,582	¥	20,667		¥	(453,398	)	¥	7,895,995
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		—		37,675		64,823			(102,498	)		—
Payment to National Treasury		—		—		—		—			(37,675	)		(37,675	)
Total	¥	—	¥	—	¥	37,675	¥	64,823		¥	(140,174	)	¥	(37,675	)
Unappropriated Accumulated deficit	¥	—	¥	—	¥	—	¥	—		¥	(593,573	)	¥	—

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

NOTES TO FINANCIAL STATEMENTS

JAPAN BANK FOR INTERNATIONAL COOPERATION

1. Basis of presentation

The accompanying financial statements have been prepared from the accounts maintained by Japan Bank for International 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 and disclosure requirements from International Financial Reporting Standards.

The financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.

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 separate account for each 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 the accounts 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 ¥107.39=$1.00, the exchange rate as of March 31, 2005, has been used in translation. The presentation of such 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 in hand and due from Bank 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 cost 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 are designated as hedging instruments as discussed below.

(d) Hedge accounting for interest rate risks

(i) Hedge accounting

JBIC measures derivatives used for interest rate hedging purposes under the deferral method.

(ii) Hedging instruments and hedged items

Hedging instruments: interest rate swaps

Hedged items: loans, bonds and notes

(iii) Hedging policy

JBIC enters into hedging transactions up to the value of the underlying hedged assets and liabilities.

(iv) Assessment of hedge effectiveness

JBIC assesses the effectiveness of designated hedges by measuring and comparing the fluctuations of fair value or cumulative fluctuations of cash flows of both hedging instruments and corresponding hedged items from the date of inception of the hedges to the effectiveness testing 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 measured using the deferral method, in accordance with the standard 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 and similar transactions, hedging the foreign exchange risks of monetary assets and liabilities denominated in foreign currencies is assessed by comparing the foreign currency position of the hedged monetary assets and liabilities 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 fiscal year end.

(g) Depreciation basis for fixed assets

(i) Premises and equipment

Premises and equipment are depreciated on the declining balance basis over their useful economic lives except for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciated on a straight-line basis.

The principal estimated useful economic 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 a straight-line basis over its useful economic life (5 years).

(h) Accounting standard for impairment of fixed assets

On August 9, 2002, the Business Accounting Council in Japan issued the “Accounting Standard for Impairment of Fixed Assets”. The standard requires that fixed assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss shall be recognized in the statements of operations by reducing the carrying amount of impaired assets or a group of assets to the recoverable amount to be measured as the higher of net selling price and value in use.

The standard shall be effective for fiscal years beginning April 1, 2005. However, an earlier adoption is permitted for fiscal year beginning April 1, 2004 and for fiscal years ending between March 31, 2004 and March 30, 2005.

JBIC has not yet applied this new standard nor has determined the effect of applying it on the financial statements.

(i) Method of amortization for deferred charges

“Discounts on Bonds and Notes” are amortized over terms of redemption, and “Bonds and Notes Issuance Costs” are amortized over 3 years, on the straight-line basis in accordance with the Commercial Code of Japan.

(j) Change in presentation on balance sheets

In the previous years, equity interests in limited liability partnerships (LLPs), and those in voluntary partnership under the Civil Code and silent partnership under the Commercial Code characteristics of which are similar to those of LLPs had been included in “Miscellaneous assets”. However, from this fiscal year, these are included in “Other securities” of “Securities” as they are defined as securities under the Securities and Exchange Law by the “Partial Revision of Securities and Exchange Law” (Law No. 97 dated June 9, 2004).

(k) Allowance for possible loan losses

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 described in Note 5 (h) and the deductions of the amount expected to be collected through the disposal of 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 of guarantees.

The allowance for claims on debtors other than 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 amount taking 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) Allowance for bonus payments

“Allowance 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 balance sheet. Allowance for bonus payments to executive directors is included in the account.

(m) Allowance for employee retirement benefits

Allowance 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 the estimated pension plan assets at fiscal year 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 are accounted for as operating lease.

(o) Consumption taxes

Consumption taxes, including local consumption tax, are 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 amount of cash and due from banks reported in the balance sheets as of March 31, 2005, and 2004 is as follows:

	March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U.S. dollars)
Cash and due from banks	¥	170,029		¥	217,328		$	1,583
Due from banks (*)		(99,239	)		(64,590	)		(924	)
Cash and cash equivalents	¥	70,790		¥	152,738		$	659

(*) Excluding Due from Bank of Japan

4. Securities

Securities as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Equity	¥	118,699	¥	119,902	$	1,105
Other securities		1,280		612		12
	¥	119,980	¥	120,514	$	1,117

5. Loans

All loans are loans on deeds. The amounts reported in the balance sheets as of March 31, 2005 and 2004 are as follows:

International Financial Account
	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Bankrupt loans	¥	—	¥	83	$	—
Non-accrual loans		265,797		216,429		2,475
Past due loans (3 months or more)		2,714		16,032		25
Restructured loans		325,428		385,225		3,030
	¥	593,940	¥	617,770	$	5,530

Overseas Economic Cooperation Account
	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2004 (In millions of U.S. dollars)
Bankrupt loans	¥	—	¥	—	$	—
Non-accrual loans		122,764		51,584		1,143
Past due loans (3 months or more)		—		54,245		—
Restructured loans		724,275		730,673		6,744
	¥	847,039	¥	836,504	$	7,887

(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 the following 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

• 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 over three months, 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 the borrowers (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 (over 3 month).”

(e) The amounts of Loans indicated in the table above are shown gross prior to deduction of allowance for 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 Insurance Institutions and Export Credit Institutions, etc.) due to an unfavorable balance of international payments, 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 the 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:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
International Financial Account	¥	487,301	¥	463,600	$	4,538
Overseas Economic Cooperation Account		1,282,521		1,251,786		11,943

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 Club as “Restructured loans.” The amount of such loans, included in “Restructured loans” in the above table, is ¥77,863 million ($725 million) of which ¥74,580 million ($694 million) represents original principal attributable to the International Financial Account and ¥724,275 million ($6,744 million) of which ¥570,270 million ($5,310 million) represents original principal attributable to the Overseas Economic Cooperation Account for the fiscal year ended March 31, 2005. and ¥115,380 million of which ¥78,955 million represents original principal attributable to the International Financial Account and ¥730,673 million of which ¥565,183 million represents original principal attributable to the Overseas Economic Cooperation Account for the fiscal year ended March 31, 2004, respectively.

(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. Affected countries requesting the Moratorium are currently considering whether to accept this condition or not.

As at the end of March 2005, of the affected countries, Indonesia and Sri Lanka had requested the Paris Club for a moratorium. However, since they are still considering whether to accept the conditions of the moratorium offered by the Paris Club, the amount of their deferred debts has yet to be determined. Of JBIC’s total loans to overseas sovereign debtors, those to affected countries who requested Moratorium are ¥555,470 million ($5,172 million) in the International Financial Account and ¥2,571,276 million ($23,943 million) in the Overseas Economic Cooperation Account.

Loans related to this Moratorium are not included in the loans described in (a) to (d) above, since lending terms has been modified based on an international agreement under this Moratorium to offer a grace 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 a predetermined amount, which is within 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, 2005 and 2004 are ¥5,213,942 million ($48,551 million) and ¥5,486,046 million, respectively.

(i) With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt (“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 March 31, 2005 and 2004 are ¥16,824 million ($157 million) and ¥18,092 million, respectively.

6. Miscellaneous assets

Miscellaneous assets as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Prepaid expenses	¥	1,055	¥	1,174	$	10
Accrued income (a)		169,984		184,799		1,583
Derivatives		406,902		495,869		3,789
Preliminary payment to the National Treasury (b)		18,056		19,185		168
Others (c)		3,983		3,255		37
	¥	599,982	¥	704,284	$	5,587

(Notes)

^(a) “Accrued income” includes ¥168,219 million ($1,566 million) of accrued interest on loans and others as of March 31, 2005, and ¥183,144 million of accrued interest on loans and others as of March 31, 2004.

^(b) Pursuant to Article 44 of the JBIC Law, a portion of the net earnings on the General Account of the International Financial Account is paid to the National Treasury. Preliminary payment to the National Treasury, made on a best estimate basis, is accounted for on an accruals basis.

^(c) “Others” includes ¥3,165 million ($29 million) of suspense payments and others as of March 31, 2005, and ¥1,720 million of suspense payments and ¥303 million of other accounts receivable and others as of March 31, 2004.

7. Premises and equipment

Premises and equipment as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Tangible fixed assets Land	¥	12,551	¥	12,576	$	117
Buildings		26,702		26,698		248
Equipment		5,133		5,208		48
Construction in progress		286		218		3
Total	¥	44,673	¥	44,701	$	416
Less-accumulated depreciation		18,972		18,024		177
Net book value	¥	25,701	¥	26,677	$	239
Intangible fixed assets	¥		¥		$
Software		1,453		1,124		14
Guarantee deposit		478		491		4
Others		66		66		1
Total	¥	1,998	¥	1,682	$	19
Less-accumulated depreciation		922		660		9
Net book value	¥	1,075	¥	1,022	$	10

8. Deferred charges on bonds and notes

Deferred charges on bonds and notes as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Deferred discounts on bonds and notes	¥	2,188	¥	1,291	$	21
Deferred bonds and notes issuance costs		1,530		1,416		14
	¥	3,719	¥	2,707	$	35

9. Allowance for possible loan losses

Allowance for possible loan losses as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
General allowance for possible loan losses	¥	134,550	¥	124,683	$	1,253
Specific allowance for possible loan losses		203,781		128,208		1,897
Allowance for possible losses on specific overseas loans		15,332		10,533		143
	¥	353,664	¥	263,425	$	3,293

10. Bonds and notes

Bonds and notes as of March 31, 2005 and 2004 are as follows:

Description of bonds and notes	Date of issuance	Currency and amounts March 31, 2005 (In millions)		Interest rate (%)	Maturity date	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Export-Import Bank of Japan Bonds guaranteed by Japanese govt. 27, 35-37, 39, 40, 42	May 1993- December 1997	JPY USD EUR GBP	60,000 800 1,045 400	2.875- 8.000	May 2005- June 2008	¥	371,824	¥	490,423	$	3,462
Japan Bank for International Cooperation Bonds guaranteed by Japanese govt. 1-9	November 1999- March 2005	JPY USD EUR	60,000 4,250 1,750	0.350- 7.125, LIBOR +0.0625	June 2005- December 2014		759,430		505,950		7,072
FILP Agency Bonds 1-4, 6, 8, 10-16(*)	October 2001- September 2004	JPY	620,000	0.510- 2.070	September 2006- December 2019		620,000		540,000		5,773
Overseas Economic Cooperation Fund Bonds guaranteed by Japanese govt. 8,9	December 1995- November 1996	JPY	25,000	2.9- 3.0	December 2005- November 2006		25,000		25,000		233
						¥	1,776,254	¥	1,561,373	$	16,540

(*) Non-government guaranteed bonds issued in domestic market.

Scheduled redemptions of bonds and notes for each of the next five years as of March 31, 2005 are as follows:

	In millions of yen		In millions of U.S. dollars
Fiscal year 2005	¥	268,302	$	2,498
2006		298,202		2,777
2007		162,758		1,516
2008		161,776		1,506
2009		157,390		1,466

Based on debt assumption agreements with financial institutions, JBIC has transferred the debt repayment obligation for certain bonds to such financial institutions. As of March 31, 2005, JBIC had contingent obligations in respect to the following bonds.

	In millions of yen	In millions of U. S. dollars
FILP Agency Bond 5	50,000	466
FILP Agency Bond 7	60,000	559
FILP Agency Bond 9	50,000	466

11. Borrowings

Borrowings as of March 31, 2005 and 2004 are as follows:

	Average interest rate	Due date of repayment	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Long-term borrowings
Borrowings from the Government Fund for Fiscal Investment and Loan Program	1.96	April 2005-	¥	9,404,317	¥	10,176,101	$	87,572
Borrowings from the Government Post Office Life Insurance Fund	2.17	December 2019		155,418		216,824		1,447
			¥	9,559,735	¥	10,392,925	$	89,019

Long-term borrowings with maturities for the next five years as of March 31, 2005 are as follows:

	In millions of yen		In millions of U.S. dollars
Fiscal year 2005	¥	1,264,845	$	11,778
2006		1,294,297		12,052
2007		1,552,377		14,456
2008		1,615,677		15,045
2009		1,026,513		9,559

12. Miscellaneous liabilities

Miscellaneous liabilities as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Accrued expenses (a)	¥	62,738	¥	68,881	$	584
Unearned income		4,649		2,199		43
Derivatives		20,484		16,790		191
Deferred hedge gains (b)		133,151		153,571		1,240
Others (c)		3,055		4,747		29
	¥	224,079	¥	246,191	$	2,087

(Notes)

^(a) “Accrued expenses” includes ¥37,737 million ($351 million) of accrued interest on borrowings and ¥24,095 million ($224 million) of accrued interest on bonds and notes and others as of March 31, 2005, (March 31, 2004: ¥45,499 million and ¥22,069 million respectively)

^(b) “Deferred hedge gains” are net realized or unrealized gains from hedging instruments. The gross amounts of deferred hedge gains and losses before netting as of March 31, 2005 are ¥135,610 million ($1,263 million) and ¥2,458 million ($23 million) respectively, (March 31, 2004: ¥169,900 million and ¥16,328 million respectively).

^(c) “Others” includes ¥2,895 million ($27 million) of suspense receipts and others as of March 31, 2005, (March 31, 2004: ¥4,643 million).

13. Employee retirement benefits

JBIC has a defined benefits pension plan comprising a welfare pension fund plan and lump-sum severance indemnity plan.

(a) The funded status of the pension plans

Disposition		March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Projected benefit obligation	(A)	¥	(22,945	)	¥	(22,690	)	$	(214	)
Fair value of plans assets	(B)		5,668			5,261			53
Unfunded pension obligation	(C) = (A) + (B)		(17,276	)		(17,429	)		(161	)
Unrecognized net obligation at transition	(D)		—			—			—
Unrecognized net actuarial gains/losses	(E)		—			—			—
Unrecognized prior service cost	(F)		—			—			—
Net amount recognized on the balance sheet	(G) = (C) + (D)       + (E) + (F)		(17,276	)		(17,429	)		(161	)
Prepaid pension cost	(H)		—			—			—
Allowance for employee retirement benefits	(G) – (H)	¥	(17,276	)	¥	(17,429	)	$	(161	)

(Note)   The projected benefit obligation above includes a portion in which the pension fund acts for the government welfare program.

(b) Component of pension cost

Disposition	March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Service cost	¥	958		¥	934		$	9
Interest cost		451			443			4
Expected return on plan assets		(78	)		(63	)		(1	)
Amortization of prior service cost		—			—			—
Amortization of net actuarial gains/losses		59			(625	)		1
Amortization of net obligation at transition		—			—			—
Other Costs		—			—			—
Net pension cost	¥	1,390		¥	688		$	13

(c) Principal assumptions made

	March 31, 2005	March 31, 2004
Discount rate	2.0%	2.0%
Expected rate of return on plan assets	1.5%	1.5%
Method of attributing the projected benefits to periods of services	Straight-line basis	Straight-line basis
Amortization period of prior service costs	—	—
Amortization period of actuarial gains/losses	Gains/losses are charged to net income for the year	Gains/losses are charged to net income for the year
Amortization period of net obligation at transition	—	—

14. Acceptances and guarantees

Acceptances and Guarantees as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Acceptances	¥	—	¥	—	$	—
Guarantees		899,389		724,924		8,375
	¥	899,389	¥	724,924	$	8,375

15. Assets pledged as collateral

There were no assets pledged as collateral as of March 31, 2005 and 2004.

16. Grant from general account

In accordance with the “Changes of the Debt Relief Method” announced by the Japanese government on December 10, 2002, JBIC reported the extraordinary loss (“ODA-loan related losses”) in the previous fiscal year. Under the policy to maintain the financial soundness of JBIC, the government provided JBIC a grant totaling ¥30 billion ($279 million) corresponding to “ODA-loan related losses” out of its general account for the fiscal year ended March 31, 2005 and 2004., respectively.

17. Reserve

Pursuant to Article 44 of the JBIC Law, the reserve attributable to the International Financial Account is provided from net earnings from the International Financial Account, and the reserve attributable to the Overseas Economic Cooperation Account is provided from or reversed to net earnings from the Overseas Economic Cooperation Account, respectively.

18. Lease transactions

Lease transactions in the fiscal year ended March 31, 2005 and 2004 are as follows:

(a) Finance lease transactions, excluding leases that ownership of the property are deemed to be transferred to the lessee:

• Acquisition cost, accumulated depreciation and net balance of leased property as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Acquisition cost
Equipment	¥	630	¥	322	$	6
Others		506		506		5
Total	¥	1,136	¥	828	$	11
Accumulated depreciation
Equipment		152		38		1
Others		151		50		1
Total	¥	304	¥	89	$	2
Net balance
Equipment		478		283		4
Others		354		455		3
Total	¥	832	¥	738	$	7

• Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Due within 1 year	¥	268	¥	162	$	3
Due after 1 year		574		579		5
Total	¥	842	¥	742	$	8

• Lease payment, depreciation expenses and interest expense for the fiscal year ended March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Lease payment	¥	229	¥	95	$	2
Depreciation expense		219		91		2
Interest expense		16		7		0

• Depreciation expense is calculated using the straight-line method over the useful economic life of the respective leased assets with zero residual value.

• The difference between total lease payments and the acquisition cost of leased assets is debited to interest expenses, and is allocated to each fiscal year using the interest method.

(b) Operating lease transactions:

• Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Due within 1 year	¥	2	¥	1	$	0
Due after 1 year		4		—		0
Total	¥	7	¥	1	$	0

19. Derivative transactions

Notes to derivative transactions in the fiscal year ended March 31, 2005 are as follows:

(a) Policy for derivative transactions

JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange rate risks and interest rate risks that are incurred in respect of its lending and funding operations.

(b) Transactions

Derivative transactions include interest rate and currency swaps and forward exchange contracts.

(c) Risks involved in derivative transactions

Derivative transactions involve the following risks:

(i) Credit risk

Potential loss from the failure of a counterparty to perform its obligations in accordance with terms and conditions under the contract governing transactions due to bankruptcy or deteriorating business.

(ii) Market risk

Potential loss from the changes in the market value of financial products due to fluctuations in interest rates or exchange rates.

(d) Policies for risk management on derivative transactions

(i) Credit risk

JBIC constantly monitors the market value of its derivative transactions with each counterparty and the amount of its credit exposure and creditworthiness of each counterparty in order to ascertain the appropriateness of entering into or maintaining a transaction with each counterparty.

(ii) Market risk

JBIC uses derivative transactions solely for the purpose of hedging. Therefore, the market risk on derivative transactions and that on hedged (lending or funding) transactions basically offset each other.

	(In 100 millions of yen)					(In 100 millions of U.S. dollars)
Credit risk amounts of derivative etc.	Contract amount/notional amount		Credit risk			Contract amount/notional amount		Credit risk
Interest rate swaps	¥	23,098	¥	572		$	215	$	5
Currency swaps		41,679		7,063			388		66
Forward exchange contracts		13		0			0		0
Other derivatives		—		—			—		—
Credit risk reductions through nettings		—		(1,680	)		—		(16	)
Total	¥	64,791	¥	5,956		$	603	$	55

(Note)   Credit risk amounts are calculated under Uniform International Standards in accordance with the Banking Law of Japan and the related regulations.

(e) Interest rate-related transactions

There are no interest rate related derivative transactions recorded at fair value as of the balance sheet date since hedge accounting is applied to all interest rate-related derivative transactions outstanding at year end.

(f) Currency-related transactions

There are no currency-related derivative transactions, recorded at fair value as of the balance sheet date, since hedge accounting is applied to all currency-related derivative transactions outstanding at year end.

(g) Equity-related transactions

Not applicable

(h) Bond-related transactions

Not applicable

(i) Commodity-related transactions

Not applicable

(j) Credit Derivatives transactions

Not applicable

Notes to derivative transactions in the fiscal year ended March 31, 2004 are as follows:

(a) Policy for derivative transactions

JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange rate risks and interest rate risks that are incurred in respect of its lending and funding operations.

(b) Transactions

Derivative transactions include interest rate and currency swaps and forward exchange contracts.

(c) Risks involved in derivative transactions

Derivative transactions involve the following risks:

(i) Credit risk

Potential loss from the failure of a counterparty to perform its obligations in accordance with terms and conditions under the contract governing transactions due to bankruptcy or deteriorating business.

(ii) Market risk

Potential loss from the changes in the market value of financial products due to fluctuations in interest rates or exchange rates.

(d) Policies for risk management on derivative transactions

(i) Credit risk

JBIC constantly monitors the market value of its derivative transactions with each counterparty and the amount of its credit exposure and creditworthiness of each counterparty in order to ascertain the appropriateness of entering into or maintaining a transaction with each counterparty.

(ii) Market risk

JBIC uses derivative transactions solely for the purpose of hedging. Therefore, the market risk on derivative transactions and that on hedged (lending or funding) transactions basically offset each other.

Credit risk amounts of derivative etc.	(In 100 millions of yen)
	Contract amount/notional amount		Credit risk
Interest rate swaps	¥	19,950	¥	838
Currency swaps		41,997		7,902
Forward exchange contracts		14		0
Other derivatives		—		—
Credit risk reductions through nettings		—		(1,806	)
Total	¥	61,962	¥	6,934

(Note)   Credit risk amounts are calculated under Uniform International Standards in accordance with the Banking Law of Japan and the related regulations.

(e) Interest rate-related transactions

There are no interest rate- related derivative transactions recorded at fair value as of the balance sheet date, since hedge accounting is applied to all interest rate-related derivative transactions outstanding at year end.

(f) Currency-related transactions

There are no currency-related derivative transactions recorded at fair value as of the balance sheet date, since hedge accounting is applied to all currency-related derivative transactions outstanding at year end.

(g) Equity-related transactions

Not applicable

(h) Bond-related transactions

Not applicable

(i) Commodity-related transactions

Not applicable

(j) Credit Derivatives transactions

Not applicable

20. Market value of securities

Notes to market value of securities as March 31, 2005 are as follows:

(a) Trading securities

Not applicable

(b) Held-to-maturity debt securities

Not applicable

(c) Available-for-sale securities with market value

Not applicable

(d) Held-to-maturity debt securities sold

Not applicable

(e) Available-for-sale securities sold

Not applicable

(f) Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2005 (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		115,892		1,079
Unlisted foreign equities		2,807		26
Other Japanese securities		30		0
Other unlisted foreign securities		1,250		12
Total	¥	119,980	$	1,117

(g) Change in 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 March 31, 2004 are as follows:

(a) Trading securities

Not applicable

(b) Held-to-maturity debt securities

Not applicable

(c) Available-for-sale securities with market value

Not applicable

(d) Held-to-maturity debt securities sold

Not applicable

(e) Available-for-sale securities sold

Not applicable

(f) Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable are as follows:

	March 31, 2004 (In millions of yen)
Held-to-maturity debt securities
Unlisted foreign securities	¥	—
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter		117,110
Unlisted foreign equities		2,791
Unlisted Japanese local government bonds		—
Unlisted Japanese corporate bonds		—
Unlisted foreign bonds		—
Other Japanese securities		—
Other unlisted foreign securities		612
Total	¥	120,514

(g) Change in 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

ChuoAoyama PricewaterhouseCoopers
	Kasumigaseki Bldg. 32nd Floor 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6088, Japan

Report of Independent Auditors

To the Governor of

Japan Bank for International Cooperation

We have audited the accompanying International Financial Account balance sheets of Japan Bank for International Cooperation as of March 31, 2005 and 2004, and the related International Financial Account statements of operations, equity, and cash flows for the years then ended, all expressed in Japanese Yen. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of International Financial Account of Japan Bank for International Cooperation as of March 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.

The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translated on the basis set forth in Note 1 to the accompanying financial statements.

ChuoAoyama PricewaterhouseCoopers

Tokyo, Japan

June 24, 2005

* Please note that the original of this report has been separately kept by the bank.

BALANCE SHEETS

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

	In millions of yen March 31, 2005			In millions of yen March 31, 2004			In millions of U.S. dollars March 31, 2005
Assets
Cash and due from banks (Note 3)	¥	106,105		¥	182,404		$	988
Securities (Note 4 and Note 19)		103			—			1
Loans (Note 5)		8,446,621			8,727,720			78,654
Miscellaneous assets (Note 6)		523,350			622,481			4,873
Premises and equipment (Note 7)		19,184			19,880			179
Deferred charges on bonds and notes (Note 8)		3,711			2,694			34
Customers’ liabilities for acceptances and guarantees		899,389			724,924			8,375
Allowance for possible loan losses (Note 9)		(171,153	)		(133,868	)		(1,594	)
Total assets	¥	9,827,312		¥	10,146,237		$	91,510
	In millions of yen March 31, 2005			In millions of yen March 31, 2004			In millions of U.S. dollars March 31, 2005
Liabilities and equity
Liabilities
Bonds and notes (Note 10)	¥	1,751,254		¥	1,536,373		$	16,307
Borrowings (Note 11)		5,359,276			6,027,018			49,905
Miscellaneous liabilities (Note 12)		206,716			225,843			1,925
Allowance for bonus payments		595			569			5
Allowance for employee retirement benefits (Note 13)		10,711			10,806			100
Acceptances and guarantees (Note 14)		899,389			724,924			8,375
Total liabilities		8,227,942			8,525,535			76,617
Equity
Capital attributable to the International Financial Account		985,500			985,500			9,177
Reserve attributable to the International Financial Account (Note 16)		676,258			638,582			6,297
Accumulated deficit		(62,388	)		(3,380	)		(581	)
Total equity		1,599,369			1,620,702			14,893
Total liabilities and equity	¥	9,827,312		¥	10,146,237		$	91,510

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

STATEMENTS OF OPERATIONS

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

	In millions of yen FY 2004		In millions of yen FY 2003		In millions of U.S.dollars FY 2004
Income
Interest income	¥	235,525	¥	264,451	$	2,193
Interest on loans		209,527		214,915		1,951
Interest on due from banks		2,458		1,609		23
Interest on swaps (net)		23,538		47,926		219
Fees and Commissions		5,648		6,116		53
Other operating income		13,130		309		122
Foreign exchange gains		1,640		—		15
Gains on derivative instruments		11,353		—		106
Others		136		309		1
Other ordinary income		125		404		1
Recovery of Written-off Claims		329		32		3
Profits on sales of premises and equipment		4		420		0
Total income		254,763		271,735		2,372
Expenses
Interest expenses		180,620		183,666		1,682
Interest on bonds and notes		63,259		60,400		589
Interest on borrowings		117,361		123,266		1,093
Fees and Commissions		3,524		3,574		33
Other operating expenses		1,856		4,924		17
Foreign exchange losses		—		4,058		—
Amortization of bonds and notes issuance costs		990		651		9
Others		866		214		8
General and administrative expenses		14,350		15,279		134
Other ordinary expenses		38,060		17,826		354
Provision for allowance for possible loan losses		38,039		17,704		354
Write-off of loans		11		122		0
Others		10		—		0
Losses on disposal of premises and equipment		7		10		0
Total expense		238,420		225,281		2,220
Net income	¥	16,343	¥	46,453	$	152

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

STATEMENTS OF CASH FLOWS

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

	In millions of yen FY 2004			In millions of yen FY 2003			In millions of U.S. dollars FY 2004
Cash flows from operating activities
Net income	¥	16,343		¥	46,453		$	152
Depreciation and amortization		942			1,025			9
Increase in allowance for possible loan losses		37,285			6,717			347
Increase in allowance for bonus payments		26			101			0
Decrease in allowance for employee retirement benefits		(94	)		(409	)		(1	)
Interest income		(235,525	)		(264,451	)		(2,193	)
Interest expenses		180,620			183,666			1,682
Net loss on securities		7			—			0
Foreign exchange (gain) loss		(60,049	)		299,531			(559	)
Net loss (gain) on sales of premises and equipment		2			(410	)		0
Net decrease in loans		376,086			469,897			3,502
Net increase in bonds and notes		179,225			54,212			1,669
Net decrease in borrowings		(667,742	)		(579,946	)		(6,218	)
Net (increase) decrease in due from banks (excluding cash equivalents)		(15,610	)		87,947			(145	)
Interest received		248,002			314,047			2,309
Interest paid		(186,767	)		(199,334	)		(1,739	)
Others, net		71,350			(320,063	)		664
Net cash (used in) provided by operating activities		(55,895	)		98,986			(521	)
Cash flows from investing activities
Purchases of securities		(111	)		—			(1	)
Expenditures on premises and equipment		(114	)		(522	)		(1	)
Proceeds from sales of premises and equipment		26			525			0
Net cash (used in) provided by investing activities		(199	)		2			(2	)
Cash flows from financing activities
Payment to National Treasury		(36,547	)		(38,459	)		(340	)
Net cash used in financing activities		(36,547	)		(38,459	)		(340	)
Effect of exchange rate changes on cash and cash equivalents		0			(0	)		0
Net (decrease) increase in cash and cash equivalents		(92,642	)		60,529			(863	)
Cash and cash equivalents at the beginning of the period		119,325			58,796			1,111
Cash and cash equivalents at the end of the period	¥	26,683		¥	119,325		$	248

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

	In millions of yen
	Capital attributable to the International Financial Account		Reserve attributable to the International Financial Account		Accumulated deficit			Total Equity
Balance at March 31, 2004	¥	985,500	¥	638,582	¥	(3,380	)	¥	1,620,702
Transfer from net earnings accounted under the JBIC Law to reserve		—		37,675		(37,675	)		—
Payment to National Treasury		—		—		(37,675	)		(37,675	)
Net income		—		—		16,343			16,343
Balance at March 31, 2005	¥	985,500	¥	676,258	¥	(62,388	)	¥	1,599,369
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		32,889		(32,889	)		—
Payment to National Treasury		—		—		(32,889	)		(32,889	)
Total	¥	—	¥	32,889	¥	(65,779	)	¥	(32,889	)
Unappropriated Accumulated deficit	¥	—	¥	—	¥	(128,168	)	¥	—

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

	In millions of dollars
	Capital attributable to the International Financial Account		Reserve attributable to the International Financial Account		Accumulated deficit			Total Equity
Balance at March 31, 2004	$	9,177	$	5,946	$	(31	)	$	15,092
Transfer from net earnings accounted under the JBIC Law to reserve		—		351		(351	)		—
Payment to National Treasury		—		—		(351	)		(351	)
Net income		—		—		152			152
Balance at March 31, 2005	$	9,177	$	6,297	$	(581	)	$	14,893
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		306		(306	)		—
Payment to National Treasury		—		—		(306	)		(306	)
Total	$	—	$	306	$	(612	)	$	(306	)
Unappropriated Accumulated deficit	$	—	$	—	$	(1,193	)	$	—

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

	In millions of yen
	Capital attributable to the International Financial Account		Reserve attributable to the International Financial Account		Retained earnings / (Accumulated deficit)			Total Equity
Balance at March 31, 2003	¥	985,500	¥	608,336	¥	10,658		¥	1,604,494
Transfer from net earnings accounted under the JBIC Law to reserve		—		30,246		(30,246	)		—
Payment to National Treasury		—		—		(30,246	)		(30,246	)
Net income		—		—		46,453			46,246
Balance at March 31, 2004	¥	985,500	¥	638,582	¥	(3,380	)	¥	1,620,702
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		37,675		(37,675	)		—
Payment to National Treasury		—		—		(37,675	)		(37,675	)
Total	¥	—	¥	37,675	¥	(75,351	)	¥	(37,675	)
Unappropriated Accumulated deficit	¥	—	¥	—	¥	(78,731	)	¥	—

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

NOTES TO FINANCIAL STATEMENTS

JAPAN BANK FOR INTERNATIONAL COOPERATION

International Financial Account

1. Basis of presentation

The accompanying financial statements have been prepared from the accounts maintained by Japan Bank for International 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 and disclosure requirements from International Financial Reporting Standards.

The financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.

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 for each 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 the accounts 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 ¥107.39=$1.00, the exchange rate as of March 31, 2005, has been used in translation. The presentation of such 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 in hand and due from Bank 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 cost 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 are designated as hedging instruments as discussed below.

(d) Hedge accounting for interest rate risks

(i) Hedge accounting

JBIC measures derivatives used for interest rate hedging purposes under the deferral method.

(ii) Hedging instruments and hedged items

Hedging instruments: interest rate swaps

Hedged items: loans, bonds and notes

(iii) Hedging policy

JBIC enters into hedging transactions up to the value of the underlying hedged assets and liabilities.

(iv) Assessment of hedge effectiveness

JBIC assesses the effectiveness of designated hedges by measuring and comparing the fluctuations of fair value or cumulative fluctuations of cash flows of both hedging instruments and corresponding hedged items from the date of inception of the hedges to the effectiveness testing 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 measured using the deferral method, in accordance with the standard 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 and similar transactions, hedging the foreign exchange risks of monetary assets and liabilities denominated in foreign currencies is assessed by comparing the foreign currency position of the hedged monetary assets and liabilities 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 fiscal year end.

(g) Depreciation basis for fixed assets

(i) Premises and equipment

Premises and equipment are depreciated on the declining balance basis over their useful economic lives except for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciated on a straight-line basis.

The principal estimated useful economic 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 a straight-line basis over its useful economic life (5 years).

(h) Accounting standard for impairment of fixed assets

On August 9, 2002, the Business Accounting Council in Japan issued the “Accounting Standard for Impairment of Fixed Assets.” The standard requires that fixed assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss shall be recognized in the statements of operations by reducing the carrying amount of impaired assets or a group of assets to the recoverable amount to be measured as the higher of net selling price and value in use.

The standard shall be effective for fiscal years beginning April 1, 2005. However, an earlier adoption is permitted for fiscal year beginning April 1, 2004 and for fiscal years ending between March 31, 2004 and March 30, 2005.

JBIC has not yet applied this new standard nor has determined the effect of applying it on the financial statements.

(i) Method of amortization for deferred charges

“Discounts on Bonds and Notes” are amortized over terms of redemption, and “Bonds and Notes Issuance Costs” are amortized over 3 years, on the straight-line basis in accordance with the Commercial Code of Japan.

(j) Change in presentation on balance sheets

In the previous years, equity interests in limited liability partnerships (LLPs), and those in voluntary partnership under the Civil Code and silent partnership under the Commercial Code characteristics of which are similar to those of LLPs had been included in “Miscellaneous assets”. However, from this fiscal year, these are included in “Other securities” of “Securities” as they are defined as securities under the Securities and Exchange Law by the “Partial Revision of Securities and Exchange Law” (Law No.97 dated June 9, 2004).

(k) Allowance for possible loan losses

JBIC provides “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 described in Note 5 (h) and the deductions of the amount expected to be collected through the disposal of 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 of guarantees.

The allowance for claims on debtors other than 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 amount taking 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) Allowance for bonus payments

“Allowance 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 balance sheet. Allowance for bonus payments to executive directors is included in the account.

(m) Allowance for employee retirement benefits

Allowance 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 the estimated pension plan assets at fiscal year 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 are accounted for as operating lease.

(o) Consumption taxes

Consumption taxes, including local consumption tax, are 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 amount of cash and due from banks reported in the balance sheets as of March 31, 2005, and 2004 is as follows:

	March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Cash and due from banks	¥	106,105		¥	182,404		$	988
Due from banks (*)		(79,421	)		(63,078	)		(740	)
Cash and cash equivalents	¥	26,683		¥	119,325		$	248

(*) Excluding Due from Bank of Japan

4. Securities

Securities as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Equity	¥	12	¥	—	$	0
Other securities		90		—		1
	¥	103	¥	—	$	1

5. Loans

All loans are loans on deeds. The amounts reported in the balance sheets as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Bankrupt loans	¥	—	¥	83	$	—
Non-accrual loans		265,797		216,429		2,475
Past due loans (3 months or more)		2,714		16,032		25
Restructured loans		325,428		385,225		3,030
	¥	593,940	¥	617,770	$	5,530

(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 the following 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

• 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 over three months, 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 the borrowers (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 (over 3 month ).”

(e) The amounts of Loans indicated in the table above are shown gross prior to deduction of allowance for 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 Insurance Institutions and Export Credit Institutions, etc.) due to an unfavorable balance of international payments, 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 the 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:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
International Financial Account	¥	487,301	¥	463,600	$	4,538

In terms of repayment probability od 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 Club as “Restructured loans.” The amount of such loans, included in “Restructured loans” in the above table, is ¥77,863 million ($725 million) of which ¥74,580 million ($694 million) represents original principal attributable to the International Financial Account for the fiscal year ended March 31, 2005, and is ¥115,380 million of which ¥78,955 million represents original principal attributable to the International Financial Account for the fiscal year ended March 31, 2004, respectively.

(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. Affected countries requesting the Moratorium are currently considering whether to accept this condition or not.

As at the end of March 2005, of the affected countries, Indonesia and Sri Lanka had requested the Paris Club for a moratorium. However, since they are still considering whether to accept the conditions of the moratorium offered by the Paris Club, the amount of their deferred debts has yet to be determined. Of JBIC’s total loans to overseas sovereign debtors, those to affected countries who requested Moratorium are ¥555,470 million ($5,172 million) in the International Financial Account.

Loans related to this Moratorium are not included in the loans described in (a) to (d) above, since lending terms has been modified based on an international agreement under this Moratorium to offer a grace 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 a predetermined amount, which is within 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, 2005 and 2004 are ¥1,212,442 million ($ 11,290 million) and ¥1,445,085 million respectively.

(i) With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt (“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 March 31, 2005 and 2004 are ¥16,824 million ($157 million) and ¥18,092 million, respectively.

6. Miscellaneous assets

Miscellaneous assets as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Prepaid expenses	¥	654	¥	728	$	6
Accrued income (a)		95,391		104,991		888
Derivatives		406,902		495,869		3,789
Preliminary payment to the National Treasury (b)		18,056		19,185		168
Others (c)		2,346		1,706		22
	¥	523,350	¥	622,481	$	4,873

(Notes)

^(a) “Accrued income” includes ¥94,122 million ($876 million) of accrued interest on loans and others as of March 31, 2005, and ¥103,654 million of accrued interest on loans and others as of March 31, 2004.

^(b) Pursuant to Article 44 of the JBIC Law, a portion of the net earnings on the General Account of the International Financial Account is paid to the National Treasury. Preliminary payment to the National Treasury, made on a best estimate basis, is accounted for on an accruals basis.

^(c) “Others” includes ¥1,980 million ($18 million) of suspense payments as of March 31, 2005, and ¥1,079 million of suspense payments as of March 31, 2004.

7. Premises and equipment

Premises and equipment as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Tangible fixed assets
Land	¥	9,556	¥	9,556	$	89
Buildings		19,480		19,478		181
Equipment		3,882		3,951		36
Construction in progress		177		135		2
Total	¥	33,097	¥	33,121	$	308
Less-accumulated depreciation		14,081		13,412		131
Net book value	¥	19,015	¥	19,708	$	177
Intangible fixed assets Software	¥	901	¥	697	$	8
Guarantee deposit		162		162		2
Others		66		66		1
Total	¥	1,130	¥	926	$	11
Less-accumulated depreciation		595		431		6
Net book value	¥	535	¥	495	$	5

8. Deferred charges on bonds and notes

Deferred charges on bonds and notes as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Deferred discounts on bonds and notes	¥	2,180	¥	1,278	$	20
Deferred bonds and notes issuance costs		1,530		1,416		14
	¥	3,711	¥	2,694	$	34

9. Allowance for possible loan losses

Allowance for possible loan losses as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
General allowance for possible loan losses	¥	46,980	¥	44,798	$	437
Specific allowance for possible loan losses		108,840		78,536		1,014
Allowance for possible losses on specific overseas loans		15,332		10,533		143
	¥	171,153	¥	133,868	$	1,594

10. Bonds and notes

Bonds and notes as of March 31, 2005 and 2004 are as follows:

Description of Bonds and notes	Date of issuance	Currency and amounts March 31, 2005 (In millions)		Interest rate (%)		Maturity date	March 31, 2005 (In millions of yen		March 31, 2004 (In millions of yen)		March 31, 2005 ((In millions of U. S. dollars)
Export-Import Bank of Japan Bonds guaranteed by Japanese govt. 27, 35-37, 39, 40, 42	May 1993- December 1997	JPY USD EUR GBP	60,000 800 1,045 400	2.875 8.000	-	May 2005- June 2008	¥	371,824	¥	490,423	$	3,462
Japan Bank for International Cooperation Bonds guaranteed by Japanese govt. 1-9	November 1999- March 2005	JPY USD EUR	60,000 4,250 1,750	0.350 7.125, LIBOR +0.0625	-	June 2005- December 2014		759,430		505,950		7,072
FILP Agency Bonds 1-4, 6, 8, 10-16(*)	October 2001- September 2004	JPY	620,000	0.510 2.070	-	September 2006- December 2019		620,000		540,000		5,773
							¥	1,751,254	¥	1,536,373	$	16,307

(*) Non-government guaranteed bonds issued in domestic market.

Scheduled redemptions of bonds and notes for each of the next five years as of March 31, 2005 are as follows:

	In millions of yen		In millions of U.S. dollars
Fiscal year 2005	¥	253,302	$	2,359
2006		288,202		2,684
2007		162,758		1,516
2008		161,776		1,506
2009		157,390		1,466

Based on debt assumption agreements with financial institutions, JBIC has transferred the debt repayment obligation for certain bonds to such financial institutions. As of March 31, 2005, JBIC had contingent obligations in respect to the following bonds.

	In millions of yen	In millions of U. S. dollars
FILP Agency Bond 5	50,000	466
FILP Agency Bond 7	60,000	559
FILP Agency Bond 9	50,000	466

11. Borrowings

Borrowings as of March 31, 2005 and 2004 are as follows:

	Average interest rate	Due date of repayment	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Borrowings from the Government Fund for Fiscal Investment and Loan Program	1.75		¥	5,263,934	¥	5,892,214	$	49,017
Borrowings from the Government Post Office Life Insurance Fund	2.23	April 2005- February 2015		95,342		134,804		888
			¥	5,359,276	¥	6,027,018	$	49,905

Long-term borrowings with maturities for the next five years as of March 31, 2005 are as follows:

	In millions of yen		In millions of U.S. dollars
Fiscal year 2005	¥	740,807	$	6,898
2006		794,184		7,395
2007		1,085,282		10,106
2008		1,165,274		10,851
2009		616,643		5,742

12. Miscellaneous liabilities

Miscellaneous liabilities as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Accrued expenses (a)	¥	46,026	¥	51,184	$	429
Unearned income		4,649		2,199		43
Derivatives		20,484		16,790		191
Deferred hedge gains (b)		133,151		153,571		1,240
Others (c)		2,404		2,097		22
	¥	206,716	¥	225,843	$	1,925

(Notes)

^(a) “Accrued expenses” includes ¥21,392 million ($199 million) of accrued interest on borrowings and ¥24,072 million ($224 million) of accrued interest on bonds and notes and others as of March 31, 2005, (March 31,2004:¥28,322 million and ¥22,046 million respectively).

^(b) “Deferred hedge gains” are net realized or unrealized gains from hedging instruments. The gross amounts of deferred hedge gains and losses before netting as of March 31, 2005 are ¥135,610 million ($1,263 million) and ¥2,458 million ($23 million) respectively, (March 31, 2004: ¥169,900 million and ¥16,328 million respectively).

^(c) “Others” includes ¥2,244 million ($21 million) of suspense receipts and others as of March 31, 2005, (March 31,2004: ¥1,993 million).

13. Employee retirement benefits

JBIC has a defined benefits pension plan comprising a welfare pension fund plan and lump-sum severance indemnity plan.

(a) The funded status of the pension plans

Disposition		March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Projected benefit obligation	(A)	¥	(14,226	)	¥	(14,068	)	$	(133	)
Fair value of plans assets	(B)		3,514			3,261			33
Unfunded pension obligation	(C) = (A) + (B)		(10,711	)		(10,806	)		(100	)
Unrecognized net obligation at transition	(D)		—			—			—
Unrecognized net actuarial gains/losses	(E)		—			—			—
Unrecognized prior service cost	(F)		—			—			—
Net amount recognized on the balance sheet	(G) = (C) + (D)		(10,711	)		(10,806	)		(100	)
	+ (E) + (F)
Prepaid pension cost	(H)		—			—			—
Allowance for employee retirement benefits	(G) – (H)	¥	(10,711	)	¥	(10,806	)	$	(100	)

(Note)   The projected benefit obligation above includes a portion in which the pension fund acts for the government welfare program.

(b) Component of pension cost

Disposition	March 31, 2005 (In millions of yen)				March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Service cost	¥	594			¥	579		$	5
Interest cost		279				274			3
Expected return on plan assets		(48	)			(39	)		(0	)
Amortization of prior service cost		—				—			—
Amortization of net actuarial gains/losses		36				(387	)		0
Amortization of net obligation at transition		—				—			—
Other Costs		—				—			—
Net pension cost	¥	862			¥	426		$	8
				��

(c) Principal assumptions made

	March 31, 2005			March 31, 2004
Discount rate		2.0	%		2.0	%
Expected rate of return on plan assets		1.5	%		1.5	%
Method of attributing the projected benefits to periods of services	Straight-line basis			Straight-line basis
Amortization period of prior service costs	—			—
Amortization period of actuarial gains/losses	Gains/losses are			Gains/losses are
	charged to net			charged to net
	income for the year			income for the year
Amortization period of net obligation at transition	—			—

14. Acceptances and guarantees

Acceptances and Guarantees as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Acceptances	¥	—	¥	—	$	—
Guarantees		899,389		724,924		8,375
	¥	899,389	¥	724,924	$	8,375

15. Assets pledged as collateral

There were no assets pledged as collateral as of March 31, 2005 and 2004.

16. Reserve

Pursuant to Article 44 of the JBIC Law, the reserve attributable to the International Financial Account is provided from net earnings from the International Financial Account.

17. Lease transactions

Lease transactions in the fiscal year ended March 31, 2005 and 2004 are as follows:

(a) Finance lease transactions, excluding leases that ownership of the property are deemed to be transferred to the lessee:

• Acquisition cost, accumulated depreciation and net balance of leased property as of March 31, 2005 and 2004, are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Acquisition cost
Equipment	¥	390	¥	199	$	4
Others		313		313		3
Total	¥	704	¥	513	$	7
Accumulated depreciation
Equipment		94		24		1
Others		94		31		1
Total	¥	188	¥	55	$	2
Net balance
Equipment		296		175		3
Others		219		282		2
Total	¥	516	¥	458	$	5

• Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Due within 1 year	¥	166	¥	100	$	2
Due after 1 year		356		359		3
Total	¥	522	¥	460	$	5

• Lease payment, depreciation expenses and interest expense for the fiscal year ended March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Lease payment	¥	142	¥	59	$	1
Depreciation expense		136		56		1
Interest expense		10		4		0

• Depreciation expense is calculated using the straight-line method over the useful economic life of the respective leased assets with zero residual value.

• The difference between total lease payments and the acquisition cost of leased assets is debited to interest expenses, and is allocated to each fiscal year using the interest method.

(b) Operating lease transactions:

• Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Due within 1 year	¥	1	¥	1	$	0
Due after 1 year		2		—		0
Total	¥	4	¥	1	$	0

18. Derivative transactions

Notes to derivative transactions in the fiscal year ended March 31, 2005 are as follows:

(a) Policy for derivative transactions

JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange rate risks and interest rate risks that are incurred in respect of its lending and funding operations.

(b) Transactions

Derivative transactions include interest rate and currency swaps and forward exchange contracts.

(c) Risks involved in derivative transactions

Derivative transactions involve the following risks:

(i) Credit risk

Potential loss from the failure of a counterparty to perform its obligations in accordance with terms and conditions under the contract governing transactions due to bankruptcy or deteriorating business.

(ii) Market risk

Potential loss from the changes in the market value of financial products due to fluctuations in interest rates or exchange rates.

(d) Policies for risk management on derivative transactions

(i) Credit risk

JBIC constantly monitors the market value of its derivative transactions with each counterparty and the amount of its credit exposure, and creditworthiness of each counterparty in order to ascertain the appropriateness of entering into or maintaining a transaction with each counterparty.

(ii) Market risk

JBIC uses derivative transactions solely for the purpose of hedging. Therefore, the market risk on derivative transactions and that on hedged (lending or funding) transactions basically offset each other.

	(In 100 millions of yen)					(In 100 millions of U.S. dollars)
Credit risk amounts of derivative etc.	Contract amount/notional amount		Credit risk			Contract amount/notional amount		Credit risk
Interest rate swaps	¥	23,098	¥	572		$	215	$	5
Currency swaps		41,679		7,063			388		66
Forward exchange contracts		13		0			0		0
Other derivatives		—		—			—		—
Credit risk reductions through nettings		—		(1,680	)		—		(16	)
Total	¥	64,791	¥	5,956		$	603	$	55

(Note)   Credit risk amounts are calculated under Uniform International Standards in accordance with the Banking Law of Japan and the related regulations.

(e) Interest rate-related transactions

There are no interest rate-related derivative transactions recorded at fair value as of the balance sheet date, since hedge accounting is applied to all interest rate-related derivative transactions outstanding at year end.

(f) Currency-related transactions

There are no currency-related derivative transactions, recorded at fair value as of the balance sheet date, since hedge accounting is applied to all currency-related derivative transactions outstanding at year end.

(g) Equity-related transactions

Not applicable

(h) Bond-related transactions

Not applicable

(i) Commodity-related transactions

Not applicable

(j) Credit derivatives transactions

Not applicable

Notes to derivative transactions in the fiscal year ended March 31, 2004 are as follows:

(a) Policy for derivative transactions

JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange rate risks and interest rate risks that are incurred in respect of its lending and funding operations.

(b) Transactions

Derivative transactions include interest rate and currency swaps and forward exchange contracts.

(c) Risks involved in derivative transactions

Derivative transactions involve the following risks:

(i) Credit risk

Potential loss from the failure of a counterparty to perform its obligations in accordance with terms and conditions under the contract governing transactions due to bankruptcy or deteriorating business.

(ii) Market risk

Potential loss from the changes in the market value of financial products due to fluctuations in interest rates or exchange rates.

(d) Policies for risk management on derivative transactions

(i) Credit risk

JBIC constantly monitors the market value of its derivative transactions with each counterparty and the amount of its credit exposure and creditworthiness of each counterparty in order to ascertain the appropriateness of entering into or maintaining a transaction with each counterparty.

(ii) Market risk

JBIC uses derivative transactions solely for the purpose of hedging. Therefore, the market risk on derivative transactions and that on hedged (lending or funding) transactions basically offset each other.

	(In 100 millions of yen)
Credit risk amounts of derivative etc.	Contract amount/notional amount		Credit risk
Interest rate swaps	¥	19,950	¥	838
Currency swaps		41,997		7,902
Forward exchange contracts		14		0
Other derivatives		—		—
Credit risk reductions through Nettings		—		(1,806	)
Total	¥	61,962	¥	6,934

(Note)   Credit risk amounts are calculated under Uniform International Standards in accordance with the Banking Law of Japan and the related regulations.

(e) Interest rate-related transactions

There are no interest rate- related derivative transactions recorde at fair value as of the balance sheet date, since hedge accounting is applied to all interest rate-related derivative transactions outstanding at year end.

(f) Currency-related transactions

There are no currency-related derivative transactions recorded at fair value as of the balance sheet date, since hedge accounting is applied to all currency-related derivative transactions outstanding at year end.

(g) Equity-related transactions

Not applicable

(h) Bond-related transactions

Not applicable

(i) Commodity-related transactions

Not applicable

(j) Credit derivatives transactions

Not applicable

19. Market value of securities

Notes to market value of securities as March 31, 2005 are as follows:

(a) Trading securities

Not applicable

(b) Held-to-maturity debt securities

Not applicable

(c) Available-for-sale securities with market value

Not applicable

(d) Held-to-maturity debt securities sold

Not applicable

(e) Available-for-sale securities sold

Not applicable

(f) Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2005 (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		12		0
Unlisted foreign equities		—		—
Other Japanese securities		30		0
Other unlisted foreign securities		60		1
Total	¥	103	$	1

(g) Change in 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 March 31, 2004 are as follows:

(a) Trading securities

Not applicable

(b) Held-to-maturity debt securities

Not applicable

(c) Available-for-sale securities with market value

Not applicable

(d) Held-to-maturity debt securities sold

Not applicable

(e) Available-for-sale securities sold

Not applicable

(f) Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable

Not applicable

(g) Change in 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

ChuoAoyama PricewaterhouseCoopers
	Kasumigaseki Bldg. 32nd Floor 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6088, Japan

Report of Independent Auditors

To the Governor of

Japan Bank for International Cooperation

We have audited the accompanying Overseas Economic Cooperation Account balance sheets of Japan Bank for International Cooperation as of March 31, 2005 and 2004, and the related Overseas Economic Cooperation Account statements of operations, equity, and cash flows for the years then ended, all expressed in Japanese Yen. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Overseas Economic Cooperation Account of Japan Bank for International Cooperation as of March 31, 2005 and 2004, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.

The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translated on the basis set forth in Note 1 to the accompanying financial statements.

ChuoAoyama PricewaterhouseCoopers

Tokyo, Japan

June 24, 2005

* Please note that the original of this report has been separately kept by the bank.

BALANCE SHEETS

JAPAN BANK FOR INTERNATIONAL COOPERATION

Overseas Economic Cooperation Account

	In millions of yen March 31, 2005			In millions of yen March 31, 2004			In millions of U.S. dollars March 31, 2005
Assets
Cash and due from banks (Note 3)	¥	63,924		¥	34,924		$	595
Securities (Notes 4 and 19)		119,877			120,514			1,117
Loans (Note 5)		10,740,793			10,578,524			100,017
Miscellaneous assets (Note 6)		76,631			81,802			714
Premises and equipment (Note 7)		7,002			7,297			65
Deferred charges on bonds and notes (Note 8)		8			12			0
Allowance for possible loan losses (Note 9)		(182,511	)		(129,557	)		(1,700	)
Total assets	¥	10,825,726		¥	10,693,520		$	100,808
	In millions of yen March 31, 2005			In millions of yen March 31, 2004			In millions of U.S. dollars March 31, 2005
Liabilities and equity
Liabilities
Bonds and notes (Note 10)	¥	25,000		¥	25,000		$	233
Borrowings (Note 11)		4,200,459			4,365,907			39,114
Miscellaneous liabilities (Note 12)		17,363			20,347			162
Allowance for bonus payments		365			348			3
Allowance for employee retirement benefits (Note 13)		6,565			6,623			61
Total liabilities		4,249,752			4,418,226			39,573
Equity (Note 16)
Capital attributable to the Overseas Economic Cooperation Account		6,891,244			6,704,644			64,171
Reserve attributable to the Overseas Economic Cooperation Account		85,490			20,667			796
Accumulate deficit		(400,761	)		(450,018	)		(3,732	)
Total equity		6,575,973			6,275,293			61,235
Total liabilities and equity	¥	10,825,726		¥	10,693,520		$	100,808

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

STATEMENTS OF OPERATIONS

JAPAN BANK FOR INTERNATIONAL COOPERATION

Overseas Economic Cooperation Account

	In millions of yen FY 2004		In millions of yen FY 2003		In millions of U.S. dollar FY 2004
Income
Interest income	¥	253,095	¥	255,000	$	2,357
Interest on loans		249,456		252,720		2,323
Interest and dividend income on securities		3,638		2,280		34
Interest on due from banks		0		0		0
Fees and Commissions		685		630		6
Other operating income		21		—		0
Foreign exchange gain		21		—		0
Other ordinary income		76		90		1
Grant from general account (Note 15)		30,000		30,000		279
Reversal of allowance for possible loan losses		—		7,782		—
Recovery of Written-off Claims		1,077		3,051		10
Profits on sales of premises and equipment		17		268		0
Total income		284,974		296,823		2,653
Expenses
Interest expenses		103,954		121,834		968
Interest on bonds and notes		744		744		7
Interest on borrowings		103,209		121,089		961
Fees and Commissions		2,143		2,180		20
Other operating expenses		354		199		3
Foreign exchange losses		—		197		—
Others		354		1		3
General and administrative expenses		8,613		9,156		80
Other ordinary expenses		55,825		1,992		520
Provision for allowance for possible loan losses		52,953		—		493
Write-off of equities and securities, etc.		2,867		1,924		27
Others		3		67		0
Losses on disposal of premises and equipment		2		4		0
Total expense		170,894		135,366		1,591
Net income	¥	114,079	¥	161,457	$	1,062

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

STATEMENTS OF CASH FLOWS

JAPAN BANK FOR INTERNATIONAL COOPERATION

Overseas Economic Cooperation Account

	In millions of yen FY 2004			In millions of yen FY 2003			In millions of U.S. dollars FY 2004
Cash flows from operating activities
Net income	¥	114,079		¥	161,457		$	1,062
Depreciation and amortization		413			436			4
Increase (decrease) in allowance for possible loan losses		52,953			(51,454	)		493
Increase in allowance for bonus payments		16			62			0
Decrease in allowance for employee retirement benefits		(58	)		(251	)		(1	)
Interest income		(253,095	)		(255,000	)		(2,357	)
Interest expenses		103,954			121,834			968
Net loss on securities		2,867			1,992			27
Foreign exchange (gain) loss		(32	)		194			(0	)
Net gain on sales of premises and equipment		(14	)		(264	)		(0	)
Net increase in loans		(162,268	)		(152,942	)		(1,511	)
Net decrease in borrowings		(165,448	)		(245,810	)		(1,541	)
Net decrease in due from banks (excluding cash equivalents)		(18,298	)		(645	)		(170	)
Interest received		258,304			316,308			2,405
Interest paid		(104,780	)		(122,287	)		(975	)
Others, net		(2,771	)		223			(26	)
Net cash used in operating activities		(174,177	)		(226,146	)		(1,622	)
Cash flows from investing activities
Purchases of securities		(2,416	)		(262	)		(22	)
Sales of securities		693			635			6
Expenditures on premises and equipment		(70	)		(319	)		(1	)
Proceeds from sales of premises and equipment		65			333			1
Net cash (used in) provided by investing activities		(1,727	)		386			(16	)
Cash flows from financing activities
Proceeds from issuance of capital from Government		186,600			200,300			1,738
Net cash provided by financing activities		186,600			200,300			1,738
Effect of exchange rate changes on cash and cash equivalents		0			(0	)		0
Net increase (decrease) in cash and cash equivalents		10,694			(25,460	)		100
Cash and cash equivalents at the beginning of the period		33,412			58,873			311
Cash and cash equivalents at the end of the period	¥	44,106		¥	33,412		$	411

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

Overseas Economic Cooperation Account

	In millions of yen
	Capital attributable to the Overseas Economic Cooperation Account		Reserve attributable to the Overseas Economic Cooperation Account		Accumulated deficit			Total Equity
Balance at March 31, 2004	¥	6,704,644	¥	20,667	¥	(450,018	)	¥	6,275,293
Transfer from net earnings accounted under the JBIC Law to reserve		—		64,823		(64,823	)		—
Issuance of capital from Government		186,600		—		—			186,600
Net income		—		—		114,079			114,079
Balance at March 31, 2005	¥	6,891,244	¥	85,490	¥	(400,761	)	¥	6,575,973
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		25,833		(25,833	)		—
Total	¥	—	¥	25,833	¥	(25,833	)	¥	—
Unappropriated Accumulated deficit	¥	—	¥	—	¥	(426,595	)	¥	—

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

Overseas Economic Cooperation Account

	In millions of dollars
	Capital attributable to the Overseas Economic Cooperation Account		Reserve attributable to the Overseas Economic Cooperation Account		Accumulated deficit			Total Equity
Balance at March 31, 2004	$	62,433	$	192	$	(4,190	)	$	58,435
Transfer from net earnings accounted under the JBIC Law to reserve		—		604		(604	)		—
Issuance of capital from Government		1,738		—		—			1,738
Net income		—		—		1,062			1,062
Balance at March 31, 2005	$	64,171	$	796	$	(3,732	)	$	61,235
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		241		(241	)		—
Total	$	—	$	241	$	(241	)	$	—
Unappropriated Accumulated deficit	$	—	$	—	$	(3,973	)	$	—

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

STATEMENTS OF EQUITY

JAPAN BANK FOR INTERNATIONAL COOPERATION

Overseas Economic Cooperation Account

	In millions of yen
	Capital attributable to the Overseas Economic Cooperation Account		Reserve attributable to the Overseas Economic Cooperation Account			Accumulated deficit			Total Equity
Balance at March 31, 2003	¥	6,504,344	¥	280,719		¥	(871,526	)	¥	5,913,536
Transfer from reserve to net earnings accounted under JBIC Law		—		(260,051	)		260,051			—
Issuance of capital from Government		200,300		—			—			200,300
Net income		—		—			161,457			161,457
Balance at March 31, 2004	¥	6,704,644	¥	20,667		¥	(450,018	)	¥	6,275,293
Appropriations:
Transfer from net earnings accounted under the JBIC Law to reserve		—		64,823			(64,823	)		—
Total	¥	—	¥	64,823		¥	(64,823	)	¥	—
Unappropriated Accumulated deficit	¥	—	¥	—		¥	(514,841	)	¥	—

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

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 for International 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 and disclosure requirements from International Financial Reporting Standards.

The financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.

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 for each 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 the accounts 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 ¥107.39=$1.00, the exchange rate as of March 31, 2005, has been used in translation. The presentation of such 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 in hand and due from Bank 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 cost based on a moving average cost valuation.

(c) Foreign currency translation and revaluation method

JBIC maintains its accounting record 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.

(d) Depreciation basis for fixed assets

(i) Premises and equipment

Premises and equipment are depreciated on the declining balance basis over their useful economic lives except for buildings (excluding installed facilities) acquired on or after April 1, 1998, which are depreciated on a straight-line basis.

The principal estimated useful economic 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 a straight-line basis over its useful economic life (5 years).

(e) Accounting standard for impairment of fixed assets

On August 9, 2002, the Business Accounting Council in Japan issued the “Accounting Standard for Impairment of Fixed Assets.” The standard requires that fixed assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss shall be recognized in the statements of operations by reducing the carrying amount of impaired assets or a group of assets to the recoverable amount to be measured as the higher of net selling price and value in use.

The standard shall be effective for fiscal years beginning April 1, 2005. However, an earlier adoption is permitted for fiscal year beginning April 1, 2004 and for fiscal years ending between March 31, 2004 and March 30, 2005.

JBIC has not yet applied this new standard nor has determined the effect of applying it on the financial statements.

(f) Method of amortization for deferred charges

“Discounts on Bonds and Notes” are amortized over terms of redemption, and “Bonds and Notes Issuance Costs” are amortized over 3 years, on the straight-line basis in accordance with the Commercial Code of Japan.

(g) Change in presentation on balance sheets

In the previous years, equity interests in limited liability partnerships (LLPs), and those in voluntary partnership under the Civil Code and silent partnership under the Commercial Code characteristics of which are similar to those of LLPs had been included in “Miscellaneous assets”. However, from this fiscal year, these are included in “Other securities” of “Securities” as they are defined as securities under the Securities and Exchange Law by the “Partial Revision of Securities and Exchange Law” (Law No.97 dated June 9, 2004).

(h) Allowance for possible loan losses

JBIC provides “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 described in Note 5 (h) and the deductions of the amount expected to be collected through the disposal of 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 of guarantees.

The allowance for claims on debtors other than 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 amount taking 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.

(i) Allowance for bonus payments

“Allowance 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 balance sheet. Allowance for bonus payments to executive directors is included in the account.

(j) Allowance for employee retirement benefits

Allowance 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 the estimated pension plan assets at fiscal year end.

The actuarial gain or loss is recognized in the year in which it arises.

(k) Lease transactions

Finance leases that do not involve the transfer of ownership to the lessee at the end of the lease term are accounted for as operating lease.

(l) Consumption taxes

Consumption taxes, including local consumption tax, are 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 amount of cash and due from banks reported in the balance sheets as of March 31, 2005, and 2004 is as follows:

	March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Cash and due from banks	¥	63,924		¥	34,924		$	595
Due from banks (*)		(19,817	)		(1,511	)		(184	)
Cash and cash equivalents	¥	44,106		¥	33,412		$	411

(*) Excluding Due from Bank of Japan

4. Securities

Securities as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Equity	¥	118,687	¥	119,902	$	1,106
Other securities		1,190		612		11
	¥	119,877	¥	120,514	$	1,117

5. Loans

All loans are loans on deeds. The amounts reported in the balance sheets as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Bankrupt loans	¥	—	¥	—	$	—
Non-accrual loans		122,764		51,584		1,143
Past due loans (3 months or more)		—		54,245		—
Restructured loans		724,275		730,673		6,744
	¥	847,039	¥	836,504	$	7,887

(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 the following 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

- 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 over three months, 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 the borrowers (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 (over 3 month).”

(e) The amounts of Loans indicated in the table above are shown gross prior to deduction of allowance for 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 Insurance Institutions 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:

	March 31, 2005 (In millions of yen)	March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Overseas Economic Cooperation Account	¥1,282,521	¥	1,251,786	$	11,943

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 pricate 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 Club as “Restructured loans.” The amount of such loans, included in “Restructured loans” in the above table, is ¥724,275 million ($6,744 million) of which ¥570,270 million ($5,310 million) represents original principal attributable to the Overseas Economic Cooperation Account for the fiscal year ended March 31, 2005, and ¥730,673 million of which ¥565,183 million represents original principal attributable to the Overseas Economic Cooperation Account for the fiscal year ended March 31, 2004, respectively

(g) Upon special request, major creditor countries, including Japan, agreed at the Paris Club to offer 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 date up to December 31, 2005, and will reschedule the repayment period of deferred debts for 5 years including a 1 year grace period. Affected countries requesting the Moratorium are currently considering whether to accept this condition or not.

As at the end of March 2005, of the affected countries, Indonesia and Sri Lanka had requested the Paris Club for a moratorium. However, since they are still considering whether to accept the conditions of the moratorium offered by the Paris Club, the amount of their deferred debts has yet to be determined. Of JBIC’s total loans to overseas sovereign debtors, those to affected countries who requested Moratorium are ¥2,571,276 million ($23,943 million) in the Overseas Economic Cooperation Account.

Loans related to this Moratorium are not included in the loans described in (a) to (d) above, since lending terms has been modified based on an international agreement under this Moratorium to offer a grace 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 a predetermined amount, which is within 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, 2005 and 2004 are ¥4,001,500 million ($37,261 million) and ¥4,040,961 million, respectively.

(i) With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt (“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 in written-off against the respective claims. There were no corresponding amounts as of March 31, 2005 and 2004.

6. Miscellaneous assets

Miscellaneous assets as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Prepaid expenses	¥	400	¥	446	$	4
Accrued income (a)		74,593		79,807		695
Others (b)		1,637		1,549		15
	¥	76,631	¥	81,802	$	714

(Notes)

^(a) “Accrued income” includes ¥74,097 million ($690 million) of accrued interest on loans and others as of March 31, 2005, and ¥79,489 million of accrued interest on loans as of March 31, 2004.

^(b) “Others” includes ¥1,185 million ($11 million) of suspense payments and others as of March 31, 2005, and ¥641 million of suspense payments and others as of March 31, 2004.

7. Premises and equipment

Premises and equipment as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Tangible fixed assets
Land	¥	2,994	¥	3,019	$	28
Buildings		7,221		7,220		67
Equipment		1,250		1,257		12
Construction in progress		108		82		1
Total	¥	11,576	¥	11,580	$	108
Less-accumulated depreciation		4,890		4,611		46
Net book value	¥	6,686	¥	6,968	$	62
Intangible fixed assets
Software	¥	552	¥	427	$	5
Guarantee deposit		316		328		3
Others		0		0		0
Total	¥	868	¥	755	$	8
Less-accumulated depreciation		327		228		3
Net book value	¥	540	¥	527	$	5

8. Deferred charges on bonds and notes

Deferred charges on bonds and notes as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Deferred discounts on bonds and notes	¥	8	¥	12	$	0
Total	¥	8	¥	12	$	0

9. Allowance for possible loan losses

Allowance for possible loan losses as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
General allowance for possible loan losses	¥	87,570	¥	79,884	$	816
Specific allowance for possible loan losses		94,940		49,672		884
Allowance for possible losses on specific overseas loans		—		—		—
	¥	182,511	¥	129,557	$	1,700

10. Bonds and notes

Bonds and notes as of March 31, 2005 and 2004 are as follows:

Description of bonds and notes	Date of issuance	Currency and amounts March 31, 2005 (In millions)		Interest rate (%)	Maturity date	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Overseas Economic Cooperation Fund Bonds guaranteed by Japanese govt. 8,9	December 1995- November 1996	JPY	25,000	2.9- 3.0	December 2005- November 2006	¥	25,000	¥	25,000	$	233
						¥	25,000	¥	25,000	$	233

Scheduled redemptions of bonds and notes for each of the next five years as of March 31, 2005 are as follows:

	In millions of yen		In millions of U.S. dollars
Fiscal year 2005	¥	15,000	$	140
2006		10,000		93
2007		—		—
2008		—		—
2009		—		—

11. Borrowings

Borrowings as of March 31, 2005 and 2004 are as follows:

	Average interest rate	Due date of repayment	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Long-term borrowings
Borrowings from the Government Fund for Fiscal Investment and Loan Program	2.24	September 2005-	¥	4,140,383	¥	4,283,887	$	38,555
Borrowings from the Government Post Office Life Insurance Fund	2.07	December 2019		60,076		82,020		559
			¥	4,200,459	¥	4,365,907	$	39,114

Long-term borrowings with maturities for the next five years as of March 31, 2005 are as follows:

	In millions of yen		In millions of U.S. dollars
Fiscal year 2005	¥	524,038	$	4,880
2006		500,113		4,657
2007		467,095		4,350
2008		450,403		4,194
2009		409,870		3,817

12. Miscellaneous liabilities

Miscellaneous liabilities as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U. S. dollars)
Accrued expenses (a)	¥	16,711	¥	17,697	$	156
Others (b)		651		2,650		6
	¥	17,363	¥	20,347	$	162

(Notes)

^(a) “Accrued expenses” includes ¥16,345 million ($152 million) of accrued interest on borrowings and ¥22 million ($0 million) of accrued interest on bonds and notes and others as of March 31, 2005, (March 31, 2004: ¥17,176 million and ¥22 million respectively).

^(b) “Others” includes ¥651 million ($6 million) of suspense receipts and others as of March 31, 2005, (March 31, 2004: ¥2,650 million).

13. Employee retirement benefits

JBIC has a defined benefits pension plan comprising a welfare pension fund plan and lump-sum severance indemnity plan.

(a) The funded status of the pension plans

Disposition		March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Projected benefit obligation	(A)	¥	(8,719	)	¥	(8,622	)	$	(81	)
Fair value of plans assets	(B)		2,154			1,999			20
Unfunded pension obligation	(C) = (A) + (B)		(6,565	)		(6,623	)		(61	)
Unrecognized net obligation at transition	(D)		—			—			—
Unrecognized net actuarial gains/losses	(E)		—			—			—
Unrecognized prior service cost	(F)		—			—			—
Net amount recognized on the balance sheet	(G) = (C) + (D)		(6,565	)		(6,623	)		(61	)
	+ (E) + (F)
Prepaid pension cost	(H)		—			—			—
Allowance for employee retirement benefits	(G) – (H)	¥	(6,565	)	¥	(6,623	)	$	(61	)

(Note) The projected benefit obligation above includes a portion in which the pension fund acts for the government welfare program.

(b) Component of pension cost

Disposition	March 31, 2005 (In millions of yen)			March 31, 2004 (In millions of yen)			March 31, 2005 (In millions of U. S. dollars)
Service cost	¥	364		¥	355		$	3
Interest cost		171			168			2
Expected return on plan assets		(29	)		(24	)		(0	)
Amortization of prior service cost		—			—			—
Amortization of net actuarial gains/losses		22			(237	)		0
Amortization of net obligation at transition		—			—			—
Other Costs		—			—			—
Net pension cost	¥	528		¥	261		$	5

(c) Principal assumptions made

	March 31, 2005		March 31, 2004
Discount rate	2.0	%	2.0	%
Expected rate of return on plan assets	1.5	%	1.5	%
Method of attributing the projected benefits to periods of services	Straight-line basis		Straight-line basis
Amortization period of prior service costs	—		—
Amortization period of actuarial gains/losses	Gains/losses are charged to net income for the year		Gains/losses are charged to net income for the year
Amortization period of net obligation at transition	—		—

14. Assets pledged as collateral

There were no assets pledged as collateral as of March 31, 2005 and 2004.

15. Grant from general account

In accordance with the “Changes of the Debt Relief Method” announced by the Japanese government on December 10, 2002, JBIC reported an extraordinary loss (“ODA-loan related losses”) in the previous fiscal year. Under the policy to maintain the financial soundness of JBIC, the government provided JBIC with a grant totaling ¥30 billion ($279 million) corresponding to “ODA-loan related losses” out of its general account for the fiscal year ended March 31,2005 and 2004, respectively.

16. Equity

Pursuant to Article 44 of the JBIC Law, the reserve attributable to the Overseas Economic Cooperation Account is provided from or reversed to net earnings on the Overseas Economic Cooperation Account.

Losses carried forward to the following fiscal year are simply the sum of “Accumulated deficit at the fiscal year end” and statutory appropriation of net earnings as stipulated by the related law of JBIC. The deficit, which represents the shortfall of net assets to capital attributable to the Overseas Economic Cooperation Account as of March 31, 2005 and 2004, are ¥315,270 million ($2,936 million) and ¥429,350 million, respectively.

17. Lease transactions

Lease transactions in the fiscal year ended March 31, 2005 and 2004 are as follows:

(a) Finance lease transactions, excluding leases that ownership of the property are deemed to be transferred to the lessee:

• Acquisition cost, accumulated depreciation and net balance of leased of leased property as of March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Acquisition cost
Equipment	¥	239	¥	122	$	2
Others		192		192		2
Total	¥	431	¥	314	$	4
Accumulated depreciation
Equipment		57		14		0
Others		57		19		1
Total	¥	115	¥	33	$	1
Net balance
Equipment		181		107		2
Others		134		173		1
Total	¥	316	¥	280	$	3

• Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Due within 1 year	¥	101	¥	61	$	1
Due after 1 year		218		220		2
Total	¥	320	¥	282	$	3

• Lease payment, depreciation expenses and interest expense for the fiscal year ended March 31, 2005 and 2004 are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Lease payment	¥	87	¥	36	$	1
Depreciation expense		83		34		1
Interest expense		6		2		0

• Depreciation expense is calculated using the straight-line method over the useful economic life of the respective leased assets with zero residual value.

• The difference between total lease payments and the acquisition cost of leased assets is debited to interest expenses, and is allocated to each fiscal year using the interest method.

(b) Operating lease transactions:

• Future lease payment obligations as of March 31, 2005 and 2004 are summarized below:

	March 31, 2005 (In millions of yen)		March 31, 2004 (In millions of yen)		March 31, 2005 (In millions of U.S. dollars)
Due within 1 year	¥	1	¥	0	$	0
Due after 1 year		1		—		0
Total	¥	2	¥	0	$	0

18. Derivative transactions

There were no derivative transactions in the fiscal year ended March 31, 2005 and 2004.

19. Market value of securities

Notes to market value of securities as March 31, 2005 are as follows:

(a) Trading securities

Not applicable

(b) Held-to-maturity debt securities

Not applicable

(c) Available-for-sale securities with market value

Not applicable

(d) Held-to-maturity debt securities sold

Not applicable

(e) Available-for-sale securities sold

Not applicable

(f) Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable are as follows:

	March 31, 2005 (In millions of yen)		March 31, 2005 (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		115,879		1,079
Unlisted foreign equities		2,807		27
Other Japanese securities		—		—
Other unlisted foreign securities		1,190		11
Total	¥	119,877	$	1,117

(g) Change in 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 March 31, 2004 are as follows:

(a) Trading securities

Not applicable

(b) Held-to-maturity debt securities

Not applicable

(c) Available-for-sale securities with market value

Not applicable

(d) Held-to-maturity debt securities sold

Not applicable

(e) Available-for-sale securities sold

Not applicable

(f) Held-to maturity debt securities and available-for-sale securities whose market value is not readily determinable are as follows:

	March 31, 2004 (In millions of yen)
	¥
Held-to-maturity debt securities
Unlisted foreign securities		—
Available-for-sale securities
Unlisted Japanese equities other than over-the-counter		117,110
Unlisted foreign equities		2,791
Unlisted Japanese local government bonds		—
Unlisted Japanese corporate bonds		—
Unlisted foreign bonds		—
Other Japanese securities		—
Other unlisted foreign securities		612
Total	¥	120,514

(g) Change in 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