3.

In 2005, as part of policy-based finance reforms, discussions came about over the handling of the operations of JBIC, which is an implementation agency for yen loans. At the time it was felt that JBIC's operations should be examined based on: (1) modalities for policy-based financing to effectively implement foreign economic strategies with a view toward strategically utilizing ODA and competition with foreign countries; (2) coordination of relations with other aid agencies for the sake of the visibility of Japanese ODA; and (3) modalities for structures within the government to strategically plan, formulate, and implement aid policies. Based on this perspective, the Study Group on Overseas Economic Cooperation was established under the Chief Cabinet Secretary in December 2005. The group conducted intensive debates lasting two and a half months over modalities for structures within the government and implementation agencies for overseas economic cooperation.