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Amendment to Principal Terms and Conditions for the Purchase of Commercial Paper with Repurchase Agreements (Inclusion of Dematerialized Commercial Paper in eligible assets for CP-purchase operation)

June 11, 2003
Bank of Japan

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan, with a view to facilitating the Bank's money market operations, decided to expand the range of eligible assets for CP-purchase operation and to include dematerialized commercial paper and dematerialized asset-backed commercial paper *(amendment to Principal Terms and Conditions for the Purchase of Commercial Paper with Repurchase Agreements).

Regarding the amended Principal Terms and Conditions for the Purchase of Commercial Paper with Repurchase Agreements, see Attachment.

  • In Japan, dematerialized commercial paper was introduced at the end of March 2003, when the Japan Securities Depository Center Inc. started its operation under the Law Concerning Book-entry Transfer of Corporate Bonds and Other Securities.

Attachment

Amendment to Principal Terms and Conditions for the Purchase of
Commercial Paper with Repurchase Agreements

  • The title shall be amended as "Principal Terms and Conditions for the Purchase of CP with Repurchase Agreements".
  • Paragraph 1. shall be amended as follows.

1. Purpose

These Principal Terms and Conditions prescribe the principles for the Bank of Japan's purchase of CP (which includes commercial paper, dematerialized commercial paper, and dematerialized asset-backed commercial paper)<CP> with repurchase agreements with the aim of facilitating money market operations.

  • Paragraph 4. shall be amended as follows.

4. CP to be Purchased

Commercial paper, dematerialized commercial paper, and dematerialized asset-backed commercial paper CP accepted as eligible collateral by the Bank under "Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000).

(Supplementary Provision)

These amendments shall become effective on June 30, 2003.