Prime Minister Takaichi (高市) told the House of Representatives Committee on Financial Affairs that proceeds from the BOJ's ETF sales would be converted into funding through a newly established special account and reinvested in a growth investment program. The pace of sales and the use of the proceeds are emerging as key points of focus.
The BOJ decided at its Monetary Policy Meeting to raise the pace of ETF sales from approximately ¥330 billion to approximately ¥860 billion, on a book-value basis, with the proceeds expected to be paid into the national treasury. As a result, the amount of sale proceeds generated may increase going forward.
Prime Minister Takaichi Sanae (高市早苗) told the Committee on Financial Affairs that proceeds from the BOJ's ETF sales would be allocated to the investment program for a "Strong and Prosperous Japan," a pillar of the growth strategy, and that a new special account would be established to manage the funds separately. She said the funds would be used as collateral for the redemption of bridge government bonds.
She stressed that it would be appropriate to position the additional sale proceeds as the "fruits of Japan's growth" and reinvest them in crisis-management and growth investments to create a virtuous economic cycle. She expressed a negative view, however, of using the proceeds to fund resident-tax cuts.
The government views the move to convert the BOJ's ETF sale proceeds into funding as a shift toward using them in discussions on fiscal-policy financing. Work on the design of the new special account and the scope of eligible projects is expected to continue.