Principal Terms and Conditions for the Loan Support Program
| December 20, 2012 |
| Revision: |
March 11, 2014 |
|
March 17, 2015 |
|
January 29, 2016 |
|
July 29, 2016 |
1. Purpose
The terms and conditions prescribe the principles for the Bank of Japan's Loan Support Program (a program established on the Bank's balance sheet to provide loans made against pooled collateral with the aim of supporting private financial institutions' efforts in strengthening the foundations for economic growth and stimulating bank lending, hereinafter the same), introduced as a temporary measure to make the effect of monetary easing permeate the entire economy, with a view to achieving price stability and thereby contributing to the sound development of the national economy.
2. Method for Operating the Loan Support Program
| (1) |
The Bank shall provide loans under the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth (hereinafter referred to as the "Growth-Supporting Funding Facility") and the Fund-Provisioning Measure to Stimulate Bank Lending (hereinafter referred to as the "Stimulating Bank Lending Facility") through the Loan Support Program. |
| (2) |
Fund-provisioning under the Growth-Supporting Funding Facility covers investments or loans that contribute to strengthening the foundations for economic growth. As for the following investments and loans, the Bank shall establish special rules. Loans for the investments and loans stipulated in (c) shall be conducted in the U.S. dollar. |
|
| (a) | Equity investments (investments and loans with equity-like features) as well as asset-based lending (loans without real estate collateral or guarantees that are deemed appropriate by the Bank) |
| (b) | Small-lot investments and loans each of which amounts to 1 million yen but less than 10 million yen |
| (c) | Foreign currency-denominated investments and loans |
|
3. Maximum Outstanding Amount of Loans
| (1) |
The maximum outstanding amount of loans under the Growth-Supporting Funding Facility shall be as follows. |
|
| (a) | Loans not pursuant to the special rules stipulated in 2.(2) | 10 trillion yen |
| (b) | Loans pursuant to the special rules for the investments and loans stipulated in 2.(2)(a) | 0.5 trillion yen |
| (c) | Loans pursuant to the special rules for the investments and loans stipulated in 2.(2)(b) | 0.5 trillion yen |
| (d) | Loans pursuant to the special rules for the investments and loans stipulated in 2.(2)(c) | 24 billion U.S. dollars |
|
| (2) |
The maximum outstanding amount of loans under the Stimulating Bank Lending Facility is unlimited. |
4. Specifications Necessary for Loans
For each loan, the specifications necessary for providing loans under the Growth-Supporting Funding Facility and the Stimulating Bank Lending Facility, such as the location of operations and eligible counterparties, shall be determined pursuant to the relevant rules of the Bank, in addition to 2. and 3.
Supplementary Provision
These terms and conditions shall become effective today and shall be valid through June 30, 2021.