Temporary Rules regarding the Eligibility Standards for Loans on Deeds to Companies Denominated in the U.S. Dollar
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January 29, 2016 |
| Revision: |
April 28, 2016 |
| 1. | In light of facilitating smooth implementation of Quantitative and Qualitative Monetary Easing, for the time being, loans on deeds to companies denominated in the U.S dollar (USD) shall become eligible collateral, notwithstanding 4. (1) (c) of the "Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000). |
| 2. | Collateral prices for eligible loans on deeds to companies denominated in the USD shall be as follows, notwithstanding Table 1, "Categories of Collateral and Collateral Prices" of the "Guidelines on Eligible Collateral". |
| A residual maturity of: |
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| (1) | up to 1 year | 88% of outstanding principal balance (yen equivalent) |
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| (2) | more than 1 year and up to 3 years | 80% of outstanding principal balance (yen equivalent) |
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| (3) | more than 3 years and up to 5 years | 70% of outstanding principal balance (yen equivalent) |
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| (4) | more than 5 years and up to 7 years | 65% of outstanding principal balance (yen equivalent) |
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| (5) | more than 7 years and up to 10 years
(Those with maturity date falling in the same month of the tenth year are included.) | 55% of outstanding principal balance (yen equivalent) |
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| 3. | The "Temporary Rules regarding the Eligibility Standards for Debt of Companies in Disaster Areas" (Policy Board Decision on April 28, 2011) and the "Temporary Rules regarding the Eligibility Standards for Debt of Companies in Disaster Areas of the 2016 Kumamoto Earthquake" (Policy Board Decision on April 28, 2016) shall not be applied in loans on deeds to companies denominated in the USD. |
Supplementary Provision
The temporary rules shall become effective as soon as the preparatory work to accept eligible loans on deeds to companies denominated in the USD as collateral is completed, and a specific effective date shall be determined by the Governor.
