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Home > Monetary Policy > Monetary Policy Measures > Principal Terms and Conditions > Special Rules for Small-Lot Investments and Loans to Enhance the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth Conducted through the Loan Support Program
March 13, 2012
Revision: April 10, 2012
December 20, 2012
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January 31, 2017
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January 23, 2019
(Revision to take effect in the near future) [PDF 262KB]
With the aim of further enhancing private financial institutions' efforts to strengthen the foundations for economic growth in wide-ranging areas, the Bank established special rules that supplement the "Principal Terms and Conditions for the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth Conducted through the Loan Support Program" (Policy Board Decision on June 15, 2010, hereinafter referred to as the "Principal Terms and Conditions"). The special rules shall be applied when financial institutions make investments and loans each of which amounts to 1 million yen or more but less than 10 million yen (hereinafter referred to as "small-lot investments and loans").
The amount extended to each counterparty for each loan is the amount the counterparty wishes to borrow. Notwithstanding 8. of the Principal Terms and Conditions, such amount shall not exceed the maximum amount of loans prescribed in 3. and the unused value of the total standing pool of eligible collateral pledged to the Bank.
Notwithstanding 10.(2) of the Principal Terms and Conditions, in case the amount calculated by subtracting the amount in 3.(2)(b) from the amount in the 3.(2)(a) falls short of the amount in 3.(2)(c) for loans disbursed pursuant to these special rules on a day specified by the Bank, the counterparty shall repay the amount equivalent to the shortfall, pursuant to the Bank's relevant rules.
The date stipulated in 3.(2) shall be not later than March 31, 2020.
When applying the special rules, the term, "funds received, either borrowed or invested from financial institutions, for a period of no less than one year" in 1. of Annex 1 and the term, "lendings and investments ... for a period of no less than one year" in 1. of Annex 2 to the Principal Terms and Conditions shall be deemed to be replaced with "small-lot investments and loans made for a period of no less than one year."
The special rules shall become effective today and shall be valid through June 30, 2024.