Paying for the FILP

Takero Doi and Takeo Hoshi

No 9385, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the financial health of the Fiscal Investment and Loan Program (FILP) as of the end of March 2001. We study the financial conditions of FILP recipients, which include public corporations and local governments. We find many are de facto insolvent. Our estimates suggest as much as 75% of the FILP loans are bad. The expected losses are estimated to be about ?75 trillion (over 15% of GDP). We also studied the effects of the FILP reform of April 2001, which tries to introduce market discipline in allocation of FILP funds. No significant changes in financial flow are detected, yet. The financial market seems to differentiate the newly introduced FILP agency bonds, which are supposed to without government guarantee, from government guaranteed bonds. It is too early to tell, however, whether the financial market will become an effective monitor of FILP agencies.

JEL-codes: G2 G3 (search for similar items in EconPapers)
Date: 2002-12
New Economics Papers: this item is included in nep-rmg
Note: CF EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published as Paying for the FILP , Takero Doi, Takeo Hoshi. in Structural Impediments to Growth in Japan , Blomstrom, Corbett, Hayashi, and Kashyap. 2003

Downloads: (external link)
http://www.nber.org/papers/w9385.pdf (application/pdf)

Related works:
Chapter: Paying for the FILP (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:9385

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9385

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().