NEXI insures up to 80% of lenders’ commercial risks (after completion) and
up to 97.5% of political risks. Political risk coverage is provided for currency con-
vertibility and transfer, war, revolution, and civil war, and “any other occurrences
arising outside Japan which cannot be imputed to the insured party or the bor-
rower,” which covers matters such as expropriation. NEXI also provides invest-
ment insurance ($687 million in 2000).
NEXI also provides lenders with untied political risk guarantees as part of Ja-
pan’s aid program ($1.8 billion in 2000, a substantial portion of which related to
oil projects in Brazil).
CIRR-based funding for exports may be provided by the state-owned Japan
Bank for International Cooperation (JBIC), usually cofinancing ...