Prime Minister Takaichi Sanae (高市早苗) outlined at the Lower House Committee on Financial Affairs and Banking a policy of reinvesting gains from the Bank of Japan's ETF sales in growth investment, and disclosed plans to use them to fund the redemption of bridging government bonds. She also referred to a target for total public- and private-sector investment through fiscal 2040 and the establishment of an investment framework.
A policy has been outlined to reinvest gains from the Bank of Japan's sales of exchange-traded funds (ETFs) in an investment framework that will serve as a pillar of the growth strategy. At a meeting of the Lower House Committee on Financial Affairs and Banking, Prime Minister Takaichi Sanae (高市早苗) said she intended to direct additional sales gains to growth investment and use them to promote both crisis-management investment and growth investment.
The use of the sales gains has been designated as a source of funding for a special account and will serve as the funding backing the redemption of bridging government bonds. The Bank of Japan holds approximately ¥3.7 trillion in ETFs on a book-value basis and approximately ¥9.4 trillion on a market-value basis, and has decided to significantly increase the annual pace of sales.
The government has set a target of more than ¥370 trillion in total public- and private-sector investment by fiscal 2040 and outlined a policy of establishing an investment framework to create a strong and prosperous Japan. In the preliminary budget requests submitted at the end of August, government ministries and agencies requested a combined ¥12.173 trillion for the investment framework.