FILP REPORT 2005

  The Fiscal Investment and Loan Program (FILP) is investment and loan activity to enable the implementation of large-scale and extremely long-term projects that would be difficult for the private sector and the supply of long-term funding that would be difficult for the private financial institutions using funds raised from the financial markets through the issuance of government bonds (FILP bonds) as the funding source. In short, the FILP can be a means for the implementation of fiscal policies using financial techniques.
  This report seeks to respond to the many inquires that we have received from our readers while striving to explain the mechanism and the utilization fields of the Fiscal Investment and Loan Program (FILP) in a form that is as easily comprehensible as possible in order to provide a deeper understanding of FILP. It also explains the FILP by using the most up-to-date information possible in an easily understood manner.
  The Financial Bureau looks forward to your comments and we will continue to enhance and improve this booklet so that readers may have a better understanding of the FILP.

Financial Bureau
Ministry of Finance

September 2005

Private Finance Initiative (PFI), Development Bank of Japan
The Museum of Modern Art, Kamakura & Hayama (Hayama-machi, Kanagawa)

Outline of Fiscal Investment and Loan Program (FILP)

1. FILP as a Fiscal Policy
2. How the FILP Works
(1) Mechanism of the FILP
(2) Areas that utilize the FILP
3. The FILP Reform and Its Progress
(1) Reform of the fund procurement mechanism
(2) Project review and quantitative reduction
(3) Qualitative reforms (promotion of disclosures, development of market assessment)
4. Comprehensive Review of the FILP Reform
5. Future FILP

FILP FAQ

(1)	Is the FILP approved by the Diet?
(2)	Please explain the FY 2005 FILP Plan
(3)	What are FILP agencies?
(4)	How do FILP agencies raise funds?
(5)	How do FILP bonds differ from government bonds?
(6)	Will there be no problem with the absorption of FILP bonds after the termination of the interim measure for direct acceptance of FILP bonds?
(7)	Isn't early repayment of FILP funds possible?
(8)	Is it true that many FILP projects are generating nonperforming loans?

III

APPENDIX

・Relevant laws (Excerpts)
・Statement of Cabinet Decisions (Excerpts)
・Fiscal Investment and Loan Program
  FY 2003 FILP Plan and Results
  FY 2004 FILP Plan and Results
  FY 2005 FILP Plan
  FY 2002, 2003, and 2004 Year-End FILP Plan Balance
  Status of FILP Funds
  Issuance of FILP Bonds
  Issuance of FILP Agency Bonds
・Fiscal Loan Fund Special Account and Fiscal Loan Fund
  Fiscal Loan Fund Special Account
  Fiscal Loan Fund
・Summary of the Fiscal Loan Fund Management Report for FY2004
・Industrial Investment Spacial Account
・FY 2005 Policy (Subsidy) Cost Analysis
・Information Directory

Photographs courtesy of:
Development Bank of Japan; Japan Bank for International Cooperation; Urban Renaissance Agency (Independent Administrative Institution); Japan Water Agency (Independent Administrative Institution); Japan Green Resources Agency (Independent Administrative Institution); Welfare and Medical Service Agency; (Independent Administrative Institution) ; Japan Highway Public Corporation ; Metropolitan Expressway Public Corporation; Organization for Small & Medium Enterprises and Regional Innovation, JAPAN; Special Account for National Centers for Advanced and Specialized Medical Care