Fiscal Investment and Loan Report 2008

INTRODUCTION

The Fiscal Investment and Loan Program (FILP) is an investment and loan activity which enables to provide politically needed long-term fund that private financing is difficult to do and implement large-scale and ultralong-term projects with fund procured through national credibility such as issue of FILP bonds as financial resources. In other words, FILP is an instrument of fiscal policy by financial means.

This Report has been prepared to answer many questions that we received concerning the FILP. We have made every attempt to explain the mechanism and the utilization fields of the FILP. It also explains the FILP by using the most up-to-date information 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
August 2008

Government Oil Gas Stockpiling Project
(Special Account for Energy Policy)
Fukushima Government Oil Gas Stockpiling Base
(Matsuura, Nagasaki)

FILP REPORT 2008

PART I 　Outline of Fiscal Investment and Loan Program (FILP)

1.Fields utilizing the FILP
2.Mechanism of the FILP
3.FILP as a Fiscal Policy
4.Role of the FILP

PART II The FILP Reform and its Subsequent Developments

1.Summary of the FILP Reform
2.FILP Project Review and Streamlining
3.Development of Disclosures

(1)Policy Cost Analysis
(2)Preparation of Financial Statements Based on the Private Sector Accounting by FILP Agencies

4.Improved Checking Function on FILP Agencies

(1)On-site Monitoring
(2)Analysis of Financial Condition of Local Governments

5.Response to the Reform of Government Assets and Liabilities

6.Transfer from FILP Special Account to Government Debt Consolidation Fund

PART III FILP in the Future

1.Target Field of FILP in the Future

2.Method of Fund Procurement

3.Utilization of Industrial Investment

4.Loan to Local Governments

PART IV FAQ

Q1　Is the FILP approved by the Diet?

Q2　What is the feature of the FY2008 FILP Plan?

Q3　What are FILP agencies?

Q4　How do FILP agencies procure funds?

Q5　How do FILP bonds differ from government bonds?

Q6　Can borrowers of Fiscal Loan Fund make a pre-maturity redemption?

Q7　Is it true that many FILP projects are generating nonperforming loans?

PART V　APPENDIX

Relevant Laws and Regulations(Excerpts)
Fiscal Investment and Loan Program
  FY2006 FILP Plan and Results
  FY2007 FILP Plan and Results
  FY2008 FILP Plan
  FY2005, 2006, and 2007 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 FY 2007

Industrial Investment Special Account (Industrial Investment Account)

FY2008 Policy(Subsidy)Cost Analysis

Information Directory

Photographs courtesy of:
Special Account for Energy Policy; Japan Bank for International Cooperation; Urban Renaissance Agency (Independent
Administrative Institution); Japan Water Agency (Independent Administrative Institution);Japan Railway Construction,
Transport and Technology Agency(Independent Administrative Institution);
National Hospital Organization (Independent Administrative Institution) ;
Center for National University Finance and Management (Independent Administrative Institution) ;
Forestry and Forest Products Research Institute (Independent Administrative Institution) ;
Organization for Small & Medium Enterprises and Regional Innovation
(Independent Administrative Institution) ;
Ariake Koiki Gyosei Jimu Kumiai; Central Nippon
Expressway Co., Ltd.; Hanshin Expressway Co., Ltd.; Kansai International Airport Co., Ltd.