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Modification of the Conditions regarding the Purchases of Asset-Backed Securities

January 20, 2004
Bank of Japan

The Bank of Japan, based on the discussion at the Monetary Policy Meeting (MPM) last December, had reviewed the conditions regarding the purchase of asset-backed securities (ABSs). At the MPM held today, the Bank decided, by unanimous vote, to amend the terms and conditions for the outright purchases of ABSs1.

To encourage the permeation of the effects of monetary easing through the economy, financial markets must function properly. With such recognition, the Bank has been supporting various efforts of market participants to improve the infrastructure of the ABS market. The Bank's purchase of ABSs is part of such support.

This amendment was made in light of experiences of the actual purchase of ABSs as well as the opinions of market participants. The Bank hopes that it will contribute to the long-term development of the ABS market.

  1. Regarding the full detail of this amendment, see "Amendment to Principal Terms and Conditions for the Outright Purchases of Asset-Backed Securities."