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(Reference)Accepting Loans on Deeds to the Banks' Shareholdings Purchase Corporation with Government Guarantee as Eligible Collateral


March 16, 2004
Bank of Japan


  1. Outline

    The Bank decided to accept loans on deeds to the Banks' Shareholdings Purchase Corporation (BSPC) with government guarantee as eligible collateral.

    • The BSPC began to raise funds in the form of government-guaranteed loans on deeds in March 2004. The fund is raised at a public auction and government-guaranteed loans on deeds to the BSPC are negotiable.


  2. Collateral prices

    • Collateral prices of loans on deeds to the BSPC with government guarantee shall be calculated as follows;

    An original maturity of:
    (1) up to 1 year
    (2) more than 1 year and up to 3 years
    (3) more than 3 years and up to 5 years
    (4) more than 5 years and up to 7 years
    (5) more than 7 years and up to 10 years
    (including maturities within 120 months
    after the month of issuance.)

    96% of outstanding principal balance
    90% of outstanding principal balance
    85% of outstanding principal balance
    75% of outstanding principal balance
    60% of outstanding principal balance


  3. Schedule

    • This amendment shall become effective on March 16, 2004.

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