Amendment to Guidelines on Eligible Collateral

February 5, 2004
Bank of Japan

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided to accept inflation-indexed government bonds as eligible collateral for the Bank's provision of credit to facilitate the Bank's money market operations (see Attachment for the amended Guidelines on Eligible Collateral).

Attachment

Amendment to Guidelines on Eligible Collateral

• Table 1 shall be amended as follows.

  Table 1

  
  Categories of Collateral and Collateral Prices

  1. Government Bonds (excluding STRIPS and Inflation-Indexed Bonds)

  A residual maturity of:

  

  1-2. (No change)

  1-3. Inflation-Indexed Bonds

  A residual maturity of:
  (1) up to 5 years		97% of market price
  (2) more than 5 years and up to 10 years		95% of market price
  (3) more than 10 years and up to 20 years		90% of market price
  (4) more than 20 years		85% of market price

  

  (Special Provision)

  (No change)

  
  

• Table 2 shall be amended as follows.

  Table 2

  
  Eligibility Standards for Each Category of Collateral

  
  

  
  (Supplementary Provision)

  These amendments shall become effective on a day designated by the Governor, which shall be no later than March 31, 2004.