JFC-Micro 2009entrepreneurs JFC-Micro set "Women, youth and senior entrepreneurs fund" and has positively supported such entrepreneurs. FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 0 2,500

Outline and International Cooperation

JFC-Micro 2009

Micro Business and Individual Unit

JFC-Micro, for the vigorous development

01 JFC-Micro 2009 Outline and International Cooperation

SONY, "Graduate from JFC-Micro" Even SONY, today's worldwide enterprise, was just a small

company with only 20 employees when it started its

business. SONY also got financial support from JFC-Micro

at that time. As a result, it achieved rapid growth and

became one of Japan's leading enterprises. We can say

that SONY is a "Graduate from JFC-Micro."

JFC-Micro is one of the units of Japan Finance Corporation, which is a comprehensive policy-based financial institution wholly owned by the

Project for Vietnam Bank for Social Policies (VBSP) 07Project for SME Bank, Malaysia 08

2 International Conferences, etc. 093 Acceptance of Foreign Missions, etc. 09International Cooperation Activities in FY 2008 10

Financial Status of JFC-Micro 11Organization Chart of JFC 14

CONTENTS

JFC-Micro Operations 03Characteristics of Loans 03Business Loans 04Loan Procedure 05Support for Business Start-ups 06

071 Long-term Technical Assistance Projects 07

Japan Bank for International Cooperation (JBIC)

Small and Medium Enterprise (SME) Unit

Agriculture, Forestry, Fisheries and Food Business Unit

Micro Business and Individual Unit (JFC-Micro)

Japan Finance Corporation (JFC)(established in 2008 through the integration of four institutions)

of Micro and Small Enterprises (MSEs)

JFC-Micro 2009 Outline and International Cooperation 02

"Safety-net Loans"JFC-Micro provides "Safety-net Loans" to MSEs that are

suffering badly from cash-flow problems due to the current

economic crisis. Based on the government economic

stimulus packages, additional budget for the loan has been

allocated, and the amount of the loans disbursed has been

dramatically increasing.

"Emergency Loans"JFC-Micro provides "Emergency Loans" to support the MSEs

that are seriously affected by natural disasters, such as

earthquakes, typhoons, and so on.

Domestically licensed bank

JFC-Micro

During the period of tight-money policy

Other Loans for Supporting the Lives of the PeopleIn addition to business loans to MSEs, JFC-Micro provides other types of loans, which support a wide range of individuals.

■ Educational LoansJFC-Micro began extending loans to cover educational related expenses in 1979, as families struggled to meet the

increasingly high cost of putting children through high schools, colleges, universities, and so on. In fiscal year 2008, the total

amount of disbursed loan was ¥158 billion.

■ Loans Secured by PensionsJFC-Micro is the only one organization in Japan which is authorized to make loans on the security of pensions.

JFC-Micro Operations

Characteristics of LoansAs a policy-based financial institution, JFC-Micro has been providing business loans to Micro and Small Enterprises (MSEs) in

Japan for 60 years.

JFC-Micro has a large number of borrowers whose average loan amount is small. These figures are fairly characteristics

compared to other private sector financial institution lending.

Less than 10 years(25.3%)

10 – 19 years(18.7%)

Wide variety of business history

Proprietorships (43.8%) No Collateral (80.6 % )

About half of them are Proprietorships About 80 % of them have no collateral

BorrowersHuge number of MSEs in almost all industries

LoansSmall amount, mid-term loans with no collateral

ss than ¥3 million

About 60% of them are less than ¥5 million

4 or less (65.3%) 5 – 9 (21.0%)

About 90% of them are the companies with

Wholesale, Retail(23.9%)

Services(20.8%)

Others(19.3%

Almost all industries About 70 % of them have 3-5 year repayment period

37 – 60 months (72.7%)

( Millions )

Number of Borrowers 1.13 1.22 2.25

Average Loan Amount ¥5.75 ¥34.81 ¥80.73

2. Total number of companies in Japan is about 4.19 million.Source: Bank of Japan, website

JFC-Micro(only)

Credit Associations(279 orgs.)

Banks(146 orgs.)


■ General LoansGeneral Loans have been available to MSEs in almost all industries since JFC-Micro's establishment.

Type Who can use Maximum Amount

General Loans MSEs in almost all industries¥48 million

¥72 million (specified equipment fund)

■ Managerial Improvement Loans (MARUKEI Loans) No collateral or guarantorsBased on a formal recommendation from the head of local Chambers of Commerce and Industry (CCI) or Societies of Commerce and

Industry (SCI), JFC-Micro provides the loan without collateral or guarantors.


Managerial Improvement Loans(MARUKEI Loans)No collateral or guarantors

¥15 millionMSEs who have received managerial advice and recommendation from the head of local Chambers/Societies of Commerce and Industry.

■ Environmental Health Business (EHB) LoansEnvironmental Health Business Loans are designed to improve public hygiene and sanitation levels of restaurants, barbershops, beauty

parlors, laundries, etc.


General Loans*There are other types of EHB Loans.

¥72 – 400 million (equipment fund only)

MSEs which are running environmental health businesses:restaurants, barbershops, beauty parlors, laundries, etc.

Loans Not Requiring Third-party Guarantors or CollateralIn order to meet the needs of MSEs which prefer loans without third-party guarantors or collateral, JFC-Micro established a new loan program in 2003. It can be used for almost all types of business loans.

The following requirements must be met to utilize this program:1. Tax returns have been filed for 2 or more years. 2. Income and other taxes are paid in full in principle.*Additional rate is necessary.

■ Special LoansSpecial Loans have been set up based on the specific policy objectives, such as helping MSEs restructure and update their businesses.

Loans for business start-ups are included in this category.


New Business Nurturing Loans

Business start-ups fund¥72 million(working fund: up to ¥48 million)

Women, youth andsenior entrepreneurs fund

Safety-net Loans

Business environment change fund

¥48 millionMSEs whose businesses are suffering due to declining sales or the like

Women or people aged under 30 or 55 and over who are starting or have started their own businesses within about 5 years

People who are starting or have started their own businesses within about 5 years

■ Safety-net Loans• Financing environment change fund•

■ New Business Nurturing Loans

•

• Information Technology (IT) fund• Regional vitalization & employment promotion fund•

■ Environment & Energy Measure Loans

•■

Notes: 1. There are other types of Special Loans as following;

2. The repayment period is less than 5 years for working fund, and less than 10 years for equipment fund basically.3. Applicants can choose either "No collateral or guarantors," or "Collateral or third-party guarantors."

Business LoansIn order to meet the diverse needs of MSEs, JFC-Micro provides four main types of business loans, which are General Loans, Special Loans

(including loans for business start-ups), Managerial Improvement Loans (MARUKEI Loans) and Environmental Health Business Loans. * Conditions on this page are those as of July 2009.

05 JFC

Loan Procedure■ Business Loans (except for Management Improvement Loans)

Preliminary consultation and other advisory services are provided at JFC-Micro branch offices.1: Consultation (if necessary)

The application form must be submitted to a JFC-Micro branch office with necessary documents.2: Application

(1) InterviewAn interview is usually carried out at the JFC-Micro branch office.

(2) On-site InvestigationJFC-Micro’ ’s place of business to confirm actual conditions of ’

their business.

3: Credit Analysis

The applicant is notified the results of Credit Analysis by mail. In case that the application is

approved, contract documents are enclosed. After making the contract, the loan is disbursed.4: Loan Contract and

Disbursement

Chambers/Societies of Commerce and Industry (CCI or SCI)

Credit Committee

3. Evaluation Report

Consulting Managers

MSEs (CCI or SCI members)

mmendation for Loan

JFC-Micro

■

Total tTo1,438,41588,41 4388

(100%))

(At the end of

%)

s.8%)

Managerial Improvement Loans (MARUKEI 206,723 (14.4%)

Environmental HeBusiness Loans138,610 (9.6%)

Loans(50.5%)

Managerial ImproLoans (MARUKEI ¥425 (6.5%)

Environmental Health Business L¥548 (8.4%)

(At the end of FY 2008)


■ Creation of Job OpportunitiesThe number of business start-ups supported by JFC-Micro amounted to 20,141 in fiscal year 2008. It is estimated that over 80,000 new

employments were created.

20,141 businessstart-ups

4.1employees*

80,000new employment

* It is an average number of initial employees calculated in JFC-Micro's survey on Business Start-ups in Japan. (FY 2008)

0FY 2008FY 2003

27 21827,218

FY 2004

23,737

FY 2005

23,607

FY 2006

21,329

FY 2007

21,250 20,141

10,000

20,000

30,000

■ Support for women, youth and seniorentrepreneurs

JFC-Micro set "Women, youth and senior entrepreneurs fund"

and has positively supported such entrepreneurs.

FY 2003 FY 2004 FY 2005 FY 2006 FY 20070

2,500

5,000

7,500

10,000

12,500

3,848 3,993 4,776 4,959 5,043

1,631 1,8982,462 2,274 2,4535,479 5,8915 8912,266 2,848 3,1209 5049,5049,504 10,081 10,616

FY 2008

4,485

2,183

2,691

9 3599,3599 359

Support for Business Start-upsIn recent years, the business closing ratio has surpassed start-ups in Japan. This trend may lead to a continuing slowdown in the

economy. JFC-Micro has been supporting business start-ups, which in general find it difficult to get fund from private financial

institutions. JFC-Micro has been contributing to the economy not only through the creation of job opportunities but also by

providing funds for business start-ups without collateral or guarantors, etc.

■ Ratios of Business Established and Closed

0

2

4

6

8(%)

75-78 78-81 81-86 86-91 91-96 96-99 99-01 01-04 04-06 (Year)

Ratio of Business Established5.9 5.9

4.34 3

2.72 72.73.63 63.6

5.85 85 8

3.53 53 5

5.1

Ratio of Business Closed

3.8 3.8 4.04.0

3.53 53 53.23 23 2

5.65 65 6

6.86.86.1 6.26 2

Note: The numbers do not include those of agriculture, forestry and fisheries.

■ New Start-up Loan Program (No collateral or guarantor)

Notes: 1. Additional rate is necessary.2. The repayment period of New Business Nurturing Loans with performance-based

interest rate is 7 years.3. People who meet certain requirements (e.g. creation of employment, work

experience, and so on) are eligible.4. People who are starting their own businesses or have not yet filed the first tax

returns must cover at least one-third of the total start-up costs by themselves.

0FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

5,606 5,776 6,7806 780 7 9427,9427 94211,857

FY 2008

12,51410,000

20,000

30,000

Who can use Maximum amount Repayment Period

People who are starting their own businesses or have not yet filed the second term's tax returns since establishment

¥10 millionWorking fund/Equipment fund: 7 years or less

Women

YouthSeniorSeniorSenior

(As of July 2009)

In recent years, more and more developing countries have recognized the importance of promoting Micro and Small Enterprises (MSEs) to make sustainable economic growth. Particularly, in respect of poverty reduction and job creation, developing "MSE Finance" is considered as one of the essential economic policies for these countries.


Project for Vietnam Bank for Social Policies (VBSP)In order to reduce the poverty in Vietnam by increasing the employment, etc., VBSP started its

policy-based lending in 2003. However, as most employees did not have an experience in credit

analysis, JFC-Micro has provided VBSP with its credit analysis know-how as an ODA project of Policy

Research Institute (PRI), Ministry of Finance, Japan.

1 Long-term Technical Assistance Projects

JFC-Micro conducted seminars to deliver the contents of "Credit Analysis Materials" to as many VBSP staff as possible and explain how to use the materials effectively.

■ Phase 2 (2006-2008): Dissemination of "Credit Analysis Materials"

■ Signing Ceremony on Record of Discussion (Feb. 2006)■ Seminar in Japan (Jun. 2006, 2007)■ Seminar in Vietnam (Oct. 2006, 2007)■ Evaluation (May 2008)JFC-Micro is now considering the feasibility of the next project with PRI.

■ Preliminary Survey (Feb. 2003)■ Signing Ceremony on Record of Discussion (Jun. 2003)■ Seminar in Vietnam (Oct. 2003, 2004)■ Seminar in Japan (Feb. 2004, 2005)■ Evaluation (May 2005)

■ Phase 1 (2003-2006): Improvement of VBSP staff's ability

In order to enhance the VBSP staff's ability in credit analysis, JFC-Micro provided its techniques through lectures, case studies and discussions both in Vietnam and in Japan.

■ Guidance (Oct. 2005)■ Follow-up Seminar (Feb. 2006)

JFC-Micro supported VBSP to create "Credit Analysis Materials*" as an outcome of Phase 1.* They consist of Credit Analysis Sheet, its guide and case studies.

Follow-up (2005-2006): Creation of "Credit Analysis Materials"

International Cooperation

(As of December 2008)

Outline of VBSP

Employees: Approximately 7,100

Organization: Government financial institution

Objective: Offering funds for the poor and small businesses

Branch offices: 64 branch offices and 597 transaction offices

Outstanding Loans: Approximately US$2,939 million

Establishment: October 2002

In order to transfer the know-how on "MSE Finance," JFC-Micro established International Cooperation Office (ICO) in March 2001. ICO achieves international cooperation through the following three types of activities.


Project for SME Bank, MalaysiaBased on the recognition that development of SMEs will contribute greatly to the national economy,

SME Bank was established in 2005. However, in order to meet the strong fund demand from the

SMEs more promptly, SME Bank needs to improve its credit analysis, especially that for MSEs and

business start-ups. JFC-Micro has been providing its know-how in this field since 2008 as an ODA

project of Policy Research Institute (PRI), Ministry of Finance, Japan.

JFC-Micro conducted a field survey with PRI in

order to figure out the feasibility of technical

assistance. Executives of SME Bank officially

asked for the provision of JFC-Micro's know-how.

■ Preliminary Survey (Sep. 2007)

JFC-Micro signed RD and conducted a seminar for the Project Team (PT) of SME Bank. In the seminar, JFC-Micro explained mainly its

credit analysis for MSEs in details. The result of questionnaire showed that the seminar participants understood JFC-Micro's credit

analysis correctly.

■ Signing Ceremony on Record of Discussion (RD) and Seminar in Kuala Lumpur (Dec. 2008)

Average of 5-grade evaluation(5: Very Satisfactory ~ 1: Very Unsatisfactory)

Questionnaire result [excerpt]

Average

4.58

4.74

4.26

Term

Seminar Contents

Seminar Materials

Lecturers

Speech of Dato’ Azmi Abdullah, Managing Director of the SME Bank (excerpt)’“ … by learning from one of the best practitioners in this region. We hope to be able to fully gain from this technology transfer in credit analysis currently used by JFC-Micro….

I would like to again thank PRI…credit analysis as well as to assist the Bank in improving our loan delivery time….”

(Audited as at December 31, 2008)

Outline of SME Bank, Malaysia

Organization: Government-owned Development Financial InstitutionObjective: Offers financial and business advisory services and credit guarantee for SMEs

Branch offices: 19 branch officesEmployees: 978

: US$917 million

Establishment: October 2005


Other than the meetings above, JFC-Micro dispatches its staff to foreign countries to attend

international conferences or give lectures at several seminars. For instance, JFC-Micro staff

made a speech at "SME Forum" in Vietnam (Nov. 2008) and gave a lecture at "Study Meeting

on Financing of SMEs" in Indonesia (Aug. 2008).

“Financial Gap” in SME FinanceIn developing countries, there have been two types of financial systems for SMEs. One is“Traditional SME Finance,” which has been”conducted by commercial banks for SMEs with relatively solid bottom line and sufficient financial data. The other is“Microfinance,”which has been for low-income groups and micro enterprises. Between these two financial systems, we can see a“financial gap.”

because they do not have enough assets for collateral and financial data. Meanwhile, they are not satisfied with the loans frommicrofinance institutions because the loan amount is not enough.

“MSE Finance,” can cover the gap and that JFC-Micro loans are”positioned as“MSE Finance.”

JFC-Micro Loans

MicrofinanceLow-income Groups,Micro Enterprises

Traditional SME FinanceHighly-performing SMEs

MSE FinanceMSEs

Financial Gap

Venue

Hua Hin, Thailand (2004)Beijing, China (2005)

Hanoi, Vietnam (2006)Hong Kong, China (2007)Tokyo, Japan (2008)

Seoul, Korea (2009)

JFC has been a member of Memorandum of Understanding (MOU) by "Asia-Pacific Economic Cooperation (APEC) Financial Institutions

Dealing with SMEs" since 2003. The members consist of 13 financial institutions from 11 economies. Every year, "Annual Meeting" and

"Conference" are held in order to exchange views on the topics related to SME finance. The contents of the meetings are reported to the

APEC Finance Ministers' Meetings. JFC-Micro dispatches its staff every year and in 2008, JFC-Micro co-hosted the fifth "Annual Meeting"ff

and "Conference" in Tokyo, Japan with JFC Small and Medium Enterprise (SME) Unit.

2 International Conferences, etc.

JFC-Micro regularly accepts foreign missions (trainees,

study groups and dignitaries) from various countries

every year. On such occasions, JFC-Micro gives lectures

on SME finance in Japan, roles and functions of JFC-

Micro, its credit analysis and so on. In fiscal year 2008,

JFC-Micro accepted 32 missions.

3 Acceptance of Foreign Missions, etc.


Long-term Techinical Assistance ProjectsDate(s) Activities Counterpart Location

Final Evaluation

Signing Ceremony on RD & Seminar

Feasibility Study

Vietnam Bank for Social Policies

SME Bank, Malaysia

Vietnam Bank for Social Policies

Vietnam

Malaysia

Vietnam

International Conferences, etc.Date(s) International Conferences, etc. Location

– 15

December 15 – 20

February 17 – 20

July 15 – 16

August 0 – 060

0 –

– 90

February 19 – 20

"SME Forum"

The Fifth Annual Meeting & Conference of APEC Financial Institutions Dealing with SMEs

APO "Study Meeting on Financing of SMEs"

"Cambodia-Japan Cooperation Center (CJCC) Human Resources Development Course"

AOTS "The Training Program on Cultivating Management for SMEs in Vietnam"

Meetings with Institutions Concerned

Japan

Indonesia

Cambodia

Vietnam

Vietnam

Vietnam

0

0

Acceptance of Foreign Missions, etc.Date

April 16

23

May 19

June 16

20

23

July 010

August 070

25

September 050

October 070

090

10

27

November 040

December 010

050

11

January 22

23

28

February 060

March 030

040

040

060

16

Foreign Missions, etc.

Latin American Association of Development Financing Institutions (ALIDE)

Brazilian Micro and Small Business Support Service (SEBRAE)

The ninth Japan-Kazakhstan Joint Economic Conference

JICA "Seminar on Small and Medium Enterprises Development Policies"

French Government Financial Institution (OCEO)

World Bank Institute

"Development Finance Seminar for Bank of Industry Limited, Nigeria"

JICA "The Policy of Regional Industry Promotion for South-east European Countries" Seminar

Bank for Agriculture and Agricultural Cooperatives (BAAC), Thailand

PRI "The Summer Seminar for Central Asian and Caucasian Countries"

Japan-Taiwan Technical Cooperation 2008 "The Renewal and Financial Aid Mechanism of Small and Medium-size Enterprise in Japan"

Seminar for Food Safety Policy Making and Management

Training Program on Talent Management for Bank for Agriculture and Agricultural Cooperatives (BAAC), Thailand

"JICA Advanced Training Course for SME Policy in Vietnam" mission

JICA Trainee (Mexico)

JICA "Training and Dialogue Programs of Small & Medium Enterprise Development Policies (A)"

Trainees from 4 East Europe Countries

JICA "SME Promotion" Seminar

JICA Youth Program "Latin America SME Promotion"

JICA Seminar on Development and Promotion of SME in South-Eastern Europe

JICA "Small and Medium Enterprise Development Policies for Central and South America" Seminar

"APRACA-CENTRAB Study Visit in Japan 2009"

JICA Youth Program "Economic Development (SME Promotion), Jordan"

JICA "Training and Dialogue Program of Small & Medium Enterprise Development Policies (B)"

JICA "Seminar on Financial System"

Ministry for Economy, Industry and Employment (France)

JICA Seminar "Enforcement of Entrepreneurship and Employment Support"

JICA, Institutional Capacity Development Project for Vietnam Development Bank (VDB)

JICA "Training and Dialogue Programs of Small & Medium Enterprise Development Policies (C)"

JICA "Reinforcement of Micro, Small and Medium Enterprise Supporting Organization for African Countries"

Vietnam Development Forum (VDF) Research Mission

JICA Training Program "HRD for SME advisors, Malaysia"

0

0

0

0

0

0

0

0

0

0

0

0

0

International Cooperation Activities in FY 2008

11 JFC-Micro 2

Financial Status of JFC-MicroBalance Sheet (As of March 31, 2009) (Millions of yen)

FY 2008ASSETSCash and Due from Banks Cash ¥ 323

Due from Banks 58,70059,024

Reverse Repurchase Agreements 11,487Loans Loan certificates 7,190,817

7,190,817Other Assets Prepaid expenses 2

Accrued income 8,840Agency accounts 2,636Others 3,817

15,296Tangible Fixed Assets Buildings 18,013

Land 94,505Leased assets 1,967Buildings under construction 658Others 415

115,560Intangible Fixed Assets Software 3,010

Others 2423,253

Total Assets ¥7,291,149LIABILITIESBorrowed Funds Borrowings ¥ 5,756,339

5,756,339Bonds 1,239,189Other Liabilitie Accrued expenses 13,142

Lease obligation 2,059Others 7,083

22,285Reserve for Bonuses 3,312Reserve for Directors' Bonuses 7Reserve for Retirement Benefits 118,849Reserve for Directors' Retirement Benefits 6Total Liabilities 7,139,989NET ASSETSCapital 461,470Capital Surplus Special reserve fund for Managerial Improvement Loans 181,500

181,500Earned Surplus Other earned surplus (491,809)

Earned surplus carried forward (491,809)(491,809)

Reserve for Doubtful Accounts (104,290)

Total Capital 151,160Total Net Assets 151,160Total Liabilities and Net Assets ¥7,291,149

(FY 2008)

s.9%)

ManagerialImprovement Loans (MARUKEI 45,948 (14.4%) Environmental

Health Business L¥69 (3.1%)

(FY 2008)

Environmental HeBusiness Loans14,558 (4.6%)

Managerial ImproLoans (MARUKEI ¥186 (8.5%)

Loans(67.7%)

Total318,637(100%)

Total ¥2,191 (100%)


Income Statement (From October 1, 2008 to March 31, 2009) (Millions of yen)

FY 2008Ordinary EarningsInterest Income Interest on loans ¥ 82,365

Interest on reverse repurchase agreements 7Interest on due from banks 16Others 0

82,390Income from Service Transactions Others 47

47Government Subsidies Income Transfer from general accounts 4,516

Transfer from special accounts 04,516

Miscellaneous Income Miscellaneous income 329329

87,283Ordinary ExpensesFinancing Expenses Interest on call money 40

Interest on borrowings 24,925Interest on bonds 7,205

32,171Expenses on Service Transactions Other expenses 598

598Other Operating Expenses Amortization on bond issue costs 10

10General and Administrative Expenses 35,444Other Expenses Provision for doubtful accounts 37,767

Loans write off 292Others 5

38,065106,290

Ordinary Profit (Loss) (19,007)Extraordinary Income Recoveries of written off 26

Others 259285

Extraordinary Loss Loss on disposal of fixed assets 29Others 0

29Net Income (Loss) ¥(18,750)

FILP Special Accont(Fiscal Loan Fund)

FILP Special Account(Investment)

General Account

Fundraising Mechanisms

Financial Market

JFC-Micro

Special Account Surplus Reverses, etc.

NTT, etc.

Stock Dividends, etc

DepositsFILP Bonds

Government-guranteed Bonds

Government

JFC-MicroBonds

Loans Loans InvestmentEquity Contribution

FILP*

Money flow Bond issue

*Fiscal Investment and Loan Program


Interest Rates

Items are defined as follows:(A): Loans to borrowers classified by the self-assessment as bankrupt parties(B): Loans to borrowers classified by the self-assessment as parties likely to go bankrupt(C): Loans whose principal or interest is overdue for more than 3 months, as accounted from the day next to due date, not including loans to

bankrupt parties (A) and loans to likely bankrupt parties (B)(D): Loans whose repayment conditions have been modified to accommodate each borrower's situation, such as postponement of

payment of principal and/or interest, but not including loans classified under categories (A), (B) and (C). However, if the loans are guaranteed in full by real estate collateral and so on, they are not included in this category of restructured loans, because the credit risk is judged low.

Information on Non-performing Loans of JFC-Micro

(Billions of yen)

Loans to bankrupt parties (A) ¥ 43.3 (0.6%)

Loans to likely bankrupt parties (B) 163.8 (2.3%)

Loans overdue for 3 months or more (C) 0.2 (0.0%)

Restructured loans (D) 309.9 (4.3%)

Total (A)+(B)+(C)+(D) ¥517.4 (7.2%)

Amount of Loans Calculated under the Banking Law (As of March 31, 2009)

1

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

2.40%

2.06%

2.03%

1.76%

1.47%

JFC-Micro’s basic interest rate Credit Associations Regional Banks II Regional Banks City Banks

Source: Bank of Japan, Financial and Economic Statistics MonthlyNote: Above data (except JFC-Micro) is weighted-average interest rates of loans not only for SMEs but also for large enterprises.

Note: Figures in parentheses denote percentage against total loans outstanding.


Note: Departments of other Units, etc. and JFC-Micro’s other Divisions and Offices are not described in this chart.

Organization Chart of JFC

Crisis Response Finance Department

Governor’s Office

Research Institute

Audit Department

Planning and Administration Unit

Agriculture, Forestry, Fisheries andFood Business Unit

Small and Medium Enterprise (SME) Unit

Japan Bank for InternationalCooperation (JBIC)

Business Loan Department

Individual Loan Department

Credit Analysis Department

Loan Department for Environmental Health Business Loan

Credit Analysis Department for Environmental Health Business Loan

Business Start-ups Supporting Department

Risk Management Department

Branches

* Its functions include that for Accounting.

* Its functions include those for Human Resources and Computer System.

Business Operations Department

International Cooperation Office

Micro Business and Individual Unit (JFC-Micro)

Business Administration Department

Corporate Governance Committee

Evaluation Committee

Advisory Council to the Governor & CEO

Personnel Committee

Deputy Governor Deputy Governor

Governor & CEO

Board of Directors

Board of Auditors

Auditors’ Office

(As of March 31, 2009)

For more informationJFC-Micro Search

Contact us!JAPAN FINANCE CORPORATIONMicro Business and Individual Unit (JFC-Micro)

International Cooperation Office1-9-3, Otemachi, Chiyoda-ku, Tokyo 100-0004, JapanTel: 81-3-3270-1527 Fax: 81-3-3246-1340E-mail: [email protected] URL: http://www.k.jfc.go.jp/pfce/indexe.html

Documents

JFC-Micro 2009entrepreneurs JFC-Micro set "Women, youth and senior entrepreneurs fund" and has positively supported such entrepreneurs. FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 0 2,500