FILP REPORT 2002

Introduction

The Fiscal Investment and Loan Program (FILP) is the generic term for the government's financial techniques to carry out policy objectives by using funds raised on the basis of the state's credit.

At present, with reform of the public corporations etc. and privatization of postal services being promoted, there are various arguments with regard to the FILP. Some argue that the FILP needs to be reformed along with the special governmental corporations and postal services.
This Report has been prepared to answer the many questions that we received concerning the FILP. We have made every attempt to explain the mechanism of the FILP, what role the FILP plays, and what role the FILP should play in the future. 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.

General agriculture promotion business
(Kagoshima)

Financial Bureau
Ministry of Finance

August 2002

Tama Newtown
(Tokyo)

Minato-Mirai21(Kanagawa)

This document is a translation into English of the original text in Japanese.
The Japanese text shall be considered final and conclusive.

C O N T E N T S

I	Outline of Fiscal Investment and Loan Program (FILP)
	[1]	The Role of Government and the FILP
		The Role of Government
		Financial resources for government activities
		Functions of fiscal policy and functions of the FILP
	[2]	How the FILP works
		Mechanism of the FILP
		Areas that utilize the FILP
	[3]	Evolving the FILP
		Fundamental Reforms of the Fiscal Investment and Loan Program
		(1) Thorough harmonization with market principles
		(2) Policy (subsidy) cost analysis
		Future FILP
II	FILP FAQ
	[1]	What is the FILP Plan?
	[2]	Please explain the FY2002 FILP Plan.
	[3]	What are FILP agencies?
	[4]	How do FILP agencies raise funds?
	[5]	How do FILP bonds differ from other JGBs?
	[6]	Isn't there a problem with the fact that a large amount of FILP bonds are to be suddenly issued due to fundamental reform of the FILP?
	[7]	Can't borrowings from Fiscal Loan Fund Special Account be redeemed in advance?
	[8]	Some say, "There are non-performing loans in the FILP." Is it true?
III	APPENDIX
	Relevant laws (Excerpts)
	Statement of Cabinet Decisions (Excerpts)
	Fiscal Investment and Loan Program
	FILP Plan and Balances
	FY 2000 FILP Plan and Results
	FY 2001 FILP Plan and Results
	FY 2002 FILP Plan
	FY 1999, 2000, and 2001 Year-End FILP Plan Balances
	Status of FILP Funds
	Issuance of FILP Bonds
	Issuance of FILP Agency Bonds
	Fiscal Loan Fund Special Account and Fiscal Loan Fund
	Summary of the Fiscal Loan Fund Management Report for FY 2001
	Industrial Investment Special Account
	FY 2002 Policy (Subsidy) Cost Analysis
	Information Directory

Photographs courtesy of:
Urban Development Corporation; Fund for the Promotion and Development of the Amami Islands;
Central Japan International Airport Co., Ltd.; Japan Highway Public Corporation;
Social Welfare and Medical Service Corporation; Development Bank of Japan;
Corporation for Advanced Transport & Technology; Teito Rapid Transit Authority;
Water Resources Development Public Corporation; New Tokyo International Airport Authority;
Japan Bank for International Cooperation

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