Overview and System of Local Government Bonds in Japan

Introduction

Local Autonomy Law authorizes Japanese Local Governments – prefectures and municipalities (cities, towns and villages) - to borrow money. Their borrowing or debt, excluding those repaid within one fiscal year, is called chihousai, which is usually translated as 'Local Government Bonds'. This includes not only publicly-offered bonds and private placement bonds but also loans in the form of deeds.