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Principal Terms and Conditions for the Sale of Japanese Government Securities with Repurchase Agreements to Provide the Counterparties with Japanese Government Securities to Be Pledged as Collateral for the U.S. Dollar Funds-Supplying Operations

July 29, 2016

1. Purpose

These Principal Terms and Conditions prescribe the principles for the Bank of Japan's sale of Japanese government securities (JGSs) with repurchase agreements to provide the counterparties of loans pursuant to "Principal Terms and Conditions for U.S. Dollar Funds-Supplying Operations against Pooled Collateral" (Policy Board Decision on May 10, 2010) with JGSs to be pledged as collateral to the Bank.

2. Eligible Counterparties

Of the eligible counterparties selected pursuant to 3. of "Principal Terms and Conditions for U.S. Dollar Funds-Supplying Operations against Pooled Collateral", eligible counterparties shall be selected pursuant to 3. of "Principal Terms and Conditions for the Sale of Japanese Government Securities with Repurchase Agreements to Provide the Markets with a Secondary Source of Japanese Government Securities" (Policy Board Decision on April 9, 2004, hereinafter referred to as the "Principal Terms and Conditions for Securities Lending Facility(SLF)").

3. Miscellaneous

  1. (1) Principal Terms and Conditions for SLF, except for 6, shall be applied. The exception to 6. shall be determined by the Governor.
  2. (2) When the Bank repurchases the securities sold on the day after the next business day of the date of sales, 8. of "Principal Terms and Conditions for the Purchase/Sale of Japanese Government Securities with Repurchase Agreements" (Policy Board Decision on September 18, 2002) shall be applied.

Supplementary Provision

These terms and conditions shall become effective on the date determined by the Governor and be in effective for the time being.