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Outline of the Bill for the Amendment to the Trust Fund Bureau Fund Act and Others

Outline of the "Bill for the Amendment to the Trust Fund Bureau Fund Act and Others"

 

This bill intends to reform the scheme of the FiscalInvestment Loan Program (FILP), e.g., to abolish the compulsory deposit ofPostal Savings and Pension Reserves to the Trust Fund Bureau, and to authorizethe Fiscal Loan Fund Special Account to issue government bonds.

1. Acts Amended by the Bill


(1)

Trust Fund Bureau Fund Act (Law No.100 of 1951)
(2) Trust Fund Bureau Special Account Act (Law No.101of 1951)
(3) Special Measures Act for Long-term Appropriation of the Trust Fund Bureau Fund and Postal Life Insurance Reserves ("Long-term Appropriation Act", Law No.7 of 1973)

2. Main Reforms

 (1) Trust Fund Bureau Fund Act

(i) The title shall be altered to the "Fiscal Loan Fund Act".
(ii) The Trust Fund Bureau shall be abolished, and the Fiscal Loan Fund shall be established.
(iii) The compulsory deposit of Postal Savings and Pension Reserves shall be abolished.
(iv) Financial bills shall be introduced to smooth time lags between fund raising and loan disbursement. Limitations on outstanding borrowings shall be approved by the Diet.
(v) Assets to be allocated by the Fiscal Loan Fund shall be reviewed.

 (2) Trust Fund Bureau Special Account Act

(i) The title shall be altered to the "Fiscal Loan Fund Special Account Act".
(ii) Government bonds shall be introduced to raise only the necessary amount of funds for fiscal loans. The limitation on annual issuance shall be approved by the Diet.
(iii) Provisions for fixed-rate transfer and refunding bonds in the Special Account Law of the Government Debt Consolidation Fund shall not be applied to government bonds issued by the Fiscal Loan Fund Special Account.
(iv) The balance sheet and profit and loss statement shall be submitted to the Diet attached to the budget and settlement.

 (3) Long-term Appropriation Act

(i) The title shall be altered to the "Special Measures Act for Long-term Appropriation of the Fiscal Loan Fund".
(ii) Loans to local governments using Postal Savings and Postal Life Insurance Reserves, as well as long-term appropriation of the Fiscal Loan Fund, shall be approved by the Diet.
(iii) The FILP plan shall be defined and submitted to the Diet.

 (4) Others

(i) The bill shall be implemented from April 1, 2001.
(ii) The abolition of the compulsory deposit of Postal Savings and Pension Reserves shall be accompanied by required measures to sustain forgone loans and to avoid detrimental effects on the market.
(iii) Relating acts shall be amended in accordance with the amendments above; for example, acts concerning other special accounts shall be amended due to the abolition of the TFB.

(Note)

 With regard to FILP Agency Bonds, the regulatory ministries will amend relating acts, e.g., Government Housing Loan Corporation Act.