FILP REPORT2009

INTRODUCTION

  The Fiscal Investment and Loan Program (FILP) is an investment and loan activity which enables us to provide policy based long-term funds which private financing has a difficulty to provide, and implement large-scale and ultra long-term projects with funds procured through national credibility such as the 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 FILP. We have made every attempt to explain the mechanism and the target fields of FILP. It also explains FILP by using the most updated information in an easily understandable manner.
  The Financial Bureau looks forward to your comments and we will continue to enhance and improve this booklet so that readers can have a better understanding of FILP.

Financial Bureau
Ministry of Finance
August 2009

Special Account for Energy Policy
Government Stockpiling/Tomakomai-Tobu National Petroleum Stockpiling Base
(Hokkaido Tomakomai City)

FILP REPORT 2009

		PART I Outline of Fiscal Investment and Loan Program (FILP)
		1.Mechanism of FILP 2.Function of FILP 3.Features of FILP Column: FILP Agency bonds Column: The FILP Special Account Column: Use of Loans in Various Countries 4.Drawing up a Fiscal Investment and Loan Program (FILP) and Submitting it to the Diet Column: FILP Subcommittee of the Fiscal System Council 5.Target Fields of FILP Column: Current Status and Issues to be Considered of FILP for Regional Areas Column: Pre-maturity Redemption of Fiscal Loan Fund to Local Governments
		PART II Recent trends in FILP
		1.FILP Project Review and Streamlining Column: FILP Reform Column: Chronological table of Fiscal Loan Fund 2.Development of Disclosure (1)Policy Cost Analysis (2)Preparation of Financial Statements Based on the Private Sector Accounting by FILP Agencies 3.Improved Checking Function against FILP Agencies (1)On-site Monitoring (2)Analysis of Financial Condition of Local Governments 4.Risk management in Fiscal Loan Fund Column: Transfer from FILP Special Account to General Account 5. Economic and Financial Crisis Response by FILP Column: Content of FY 2009 FILP Plan
		PART III FAQ
		Q. What are FILP agencies? Q. How is the funding rate or the loan interest rate of the Fiscal Loan Fund decided? Q. How do FILP agencies procure funds? Q. How do FILP bonds differ from government bonds? Q. Is the money from the postal savings and the pension reserves still being used in FILP? Q. Can borrowers of Fiscal Loan Fund make a pre-maturity redemption? Q. Is it true that many FILP projects are generating nonperforming loans?
		PART IV APPENDIX
		Relevant Laws and Regulations (Excerpts) Fiscal Investment and Loan Program FILP Plan and Balances FY2007 FILP Plan and Results FY2008 FILP Plan and Results FY2009 FILP Plan FY2006, 2007 and 2008 Year-End FILP Plan Balance Status of FILP Funds Issuance of FILP Bonds Issuance of FILP Agency Bonds Fiscal Loan Fund Account of the FILP Special Account and Fiscal Loan Funds Fiscal Loan Fund Account of the FILP Special Account Fiscal Loan Fund Summary of the Fiscal Loan Fund Management Report for FY2008 FILP Special Account (Investment Account) Information Directory

*There may be cases where components do not add up because figures have been rounded off.

Photographs courtesy of:

Special Account for Energy Policy; Development Bank of Japan Inc; Japan Finance Corporation; Central Nippon Expressway Co., Ltd; Center for National University Finance and Management (Independent Administrative Institution); Organization for Small & Medium Enterprises and Regional Innovation ,JAPAN(Independent Administrative Institution); Forestry and Forest Products Research Institute (Independent Administrative Institution); Japan Water Agency (Independent Administrative Institution); Kahoku City; Shiraoi town; Toyone village; Kure City; Daisen Misato Kankyou Jigyou Kumiai; Tomakomai City; Japan InternationalCo-operation Agency (Independent administrative institution)