Saturday, November 19, 2005

Niigata to Pioneer Securitization of Public Assets

The government of Niigata is planning one of the first securitizations of local government owned assets. Two Tokyo housing blocks for employees of the prefecture are slated to be the first subject of the program. The buildings are in Kita-ku, Tokyo, and are valued at approx. 330 million yen (full story – Kyodo/Asahi Shimbun, Archive). Niigata Governor Izumida said on Thursday (11/19) that no specific firms had yet been selected to underwrite the scheme.
This could be the first of many more assets to be securitized by Niigata and other regional governments, who are faced with ballooning public debt, decreasing financial support from Tokyo, and a dwindling population.
The central government, despite encouraging the now-booming market for securitization, has flirted with it only briefly in 2000, when the Ministry of Finance sold some government land and buildings in Tokyo with the method (story: Nikkei).

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新潟県 証券化 資産 国有地


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