(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.

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	96% of outstanding principal balance
(2) more than 1 year and up to 3 years	90% of outstanding principal balance
(3) more than 3 years and up to 5 years	85% of outstanding principal balance
(4) more than 5 years and up to 7 years	75% of outstanding principal balance
(5) more than 7 years and up to 10 years	60% of outstanding principal balance

(including maturities within 120 months after the month of issuance.)