• News Release
• March 29, 2001
• Development Bank of Japan

New Interest Rate Schedule to Take Effect in FY 2001

Pursuant to fiscal investment and loan reforms to be implemented in FY 2001, funds raised from the government will be subject to a new system under which interest is determined according to the term of the loan.

In keeping with the reforms, the Development Bank of Japan is to introduce the new interest rate schedule outlined below.

These rates will be applied to new loans made on or after April 1, 2001.

1. Interest on loans will be based on the term of the loan. The following table gives the standard rates for the different loan terms and grace periods.

   As of April 1, 2001

   15-year loan term (3-year grace period) 20-year loan term (3-year grace period) Level I 1.85% 2.10% Level II 1.70% 1.95% Level III 1.55% 1.80%

2. A different schedule of interest rates, which takes into account the nature of the individual project and the risk it entails, is applied to loans to projects funded by means of project finance, venture finance, or other methods where security is markedly inadequate, as well as to large-scale projects and others for which risk-based interest rates are set according to market practice.
3. DBJ will also introduce a loan program under which interest rates are modified every ten years on the basis of periodic reviews.

   * The above figures are subject to change according to financial and other conditions.