As part of its efforts to support financially troubled Asian neighbors, Japan has signed an agreement with Singapore to back its trade insurance system with reinsurance, an official of the Ministry of International Trade and Industry said Thursday.
The reinsurance scheme was signed in Singapore between MITI and ECICS Credit Insurance Ltd., Singapore's quasigovernmental trade insurance firm, the official said.
Under the scheme, which took effect the same day, Japan is to share 50 percent to 90 percent of investment-related trade insurance with the frail insurance company through reinsurance when Japanese-affiliated and Singaporean firms based there invest overseas.
The MITI official said the scheme should help strengthen the trade insurance system in the region and encourage regional businesses to boost cross-border trade needed for economic recovery.