-->BOJ To Buy Diverse Stocks Worth Y1-3tln From Banks

TOKYO (Nikkei)--To boost the impact of its direct stock purchases from banks, the Bank of Japan plans to acquire a wide array of shares totaling about 1 to 3 trillion yen, The Nihon Keizai Shimbun learned Friday.

The central bank plans to begin working out the details with 15 major city and regional banks as well as the Ministry of Finance early next week. On Friday, the BOJ asked the banks to submit by Tuesday data about their cross-held shares with companies within their holdings.

Next week, the BOJ will also ask the banks for their input on how to create a framework for the stock purchases. The central bank intends to flesh out the details as soon as early October and then file for MOF approval. After necessary government procedures are carried out, the BOJ wants to begin purchasing stocks within this year through fiscal 2004.

The BOJ is likely to purchase shares in trillion yen increments, according to a high-ranking central bank official. As for the criteria to select stocks to buy, the BOJ plans to create its own independent guidelines and not rely on credit ratings issued by private-sector rating agencies alone, so that it will be able to incorporate as many shares as possible. The stocks of companies that have not received credit ratings are not rated by such agencies.

To prevent the BOJ's own finances from deteriorating, the central bank is very likely to exclude companies with ailing operations, such as those with negative net worth or those whose shares are trading below face value.

The BOJ will shoulder the risk of price declines on the stocks that it purchases, so it intends to set up reserves against share price fluctuations. In that case, the BOJ's payments to the government -- or the equivalent to taxes paid by private-sector companies -- will decline.

In fiscal 2001, the BOJ paid 1.4 trillion yen to the state coffers, making it a major pillar of revenue. For this reason, the central bank needs to negotiate with the MOF about the details.

Depending on how much the BOJ's payments can be reduced, the upper limit on stock purchases by the BOJ will change. But the total figure is expected to reach 3 trillion yen. As for the upper limit on purchases of individual shares, the BOJ is eyeing a plan to limit its holdings to 5-20% of outstanding shares in order to avoid having companies included in its group results.

But if the central bank takes a stake of more than 5%, it will be required to submit a report stating its ownership of shares. For this reason, some observers are concerned that this could have an impact on the price formation of individual stocks. With this in mind, a plan to have the BOJ turn to trust banks to serve as custodians for the shares in order to avoid using its own name is gaining support.

-->>BOJ To Buy Diverse Stocks Worth Y1-3tln From Banks
>TOKYO (Nikkei)--To boost the impact of its direct stock purchases from banks, the Bank of Japan plans to acquire a wide array of shares totaling about 1 to 3 trillion yen, The Nihon Keizai Shimbun learned Friday.

Die Aktien werden also monetarisiert. Die Hubschrauber starten. Die BOJ wird so zum Eigentümer der japanishen Wirtschaft. Wie und wann soll wieder privatisiert werden? Oder einfach weiter mit Planwirtschaft plus Notenpresse bis zum Totalbankrott?

>As for the criteria to select stocks to buy, the BOJ plans to create its own independent guidelines and not rely on credit ratings issued by private-sector rating agencies alone, so that it will be able to incorporate as many shares as possible. The stocks of companies that have not received credit ratings are not rated by such agencies.

Klartext: Alles wird gekauft, vorzugsweise bankrotte Firmen. Gegen was schreibt die BOJ ab?

>>To prevent the BOJ's own finances from deteriorating, the central bank is very likely to exclude companies with ailing operations, such as those with negative net worth or those whose shares are trading below face value.
>The BOJ will shoulder the risk of price declines on the stocks that it purchases, so it intends to set up reserves against share price fluctuations. In that case, the BOJ's payments to the government -- or the equivalent to taxes paid by private-sector companies -- will decline.

Gewinnausschüttungen an den Staat werden abnehmen. Anzunehmen. Was aber, wenn aus dem Gewinn der BOJ Verluste werden? Eigenkapitalaufbesserung via Staatsgarantie?

>In fiscal 2001, the BOJ paid 1.4 trillion yen to the state coffers, making it a major pillar of revenue. For this reason, the central bank needs to negotiate with the MOF about the details.

Für den Staat kein Problem, einfach ein paar Bonds mehr emmitieren. BOJ kauft, auf ein wenig mehr Schrott in der Bilanz kommt es nicht mehr an.

>With this in mind, a plan to have the BOJ turn to trust banks to serve as custodians for the shares in order to avoid using its own name is gaining support.

Isses nicht süß?

Armens Japan, was soll aus dir werden.
Gruß
diogenes