April 30, 2003
Bank of Japan

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At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan voted to approve acceptance of loans on deeds to the Industrial Revitalization Corporation of Japan with government guarantee as eligible collateral (amendment to Guidelines on Eligible Collateral).

Under the Industrial Revitalization Corporation of Japan Law, the Industrial Revitalization Corporation of Japan was established on April 16, 2003. The Industrial Revitalization Corporation of Japan is scheduled to finance its operation mainly by loans from financial institutions through competitive auctions.

Regarding the amended Guidelines on Eligible Collateral, seeAttachment.

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Attachment

(3) Procedures for Eligibility Assessment

As for collateral other than government bonds, financing bills, government-guaranteed bonds, municipal bonds issued through public offering, loans on deeds to the Government's Special Account for the Allotment of Local Allocation Tax and Local Transfer Tax,and loans on deeds to the Deposit Insurance Corporation with government guarantee,and loans on deeds to the Industrial Revitalization Corporation of Japan with government guarantee, the Bank shall assess the eligibility upon request of a financial institution that maintains a current account with the Bank (such institution hereinafter referred to as the"counterpart financial institution"). In the case of corporate debt obligations, the creditworthiness of obligors shall be evaluated in accordance with Guidelines on Credit Ratings of Companies (Policy Board Decision on October 13, 2000).

Table 1

Table 2