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IBJ to cut long-term prime rate to record-low 1.90%.

TOKYO, March 8 Kyodo

The Industrial Bank of Japan (IBJ) said Thursday it will cut its long-term prime lending rate by 0.15 percentage point to a record-low 1.90% per annum, effective Friday.

It is the second month in a row for the IBJ to cut the rate, which comes amid a decline in long-term rates following the Bank of Japan's decision to trim its target rate for unsecured overnight call money last week to around 0.15% from 0.25%.

The new rate matches the low seen in May and June of 1999, when the central bank guided the call money rate to nearly zero.

The cut in the long-term prime lending rate follows a fall to 1.00% from 1.15% in the coupon rate on five-year debentures issued this month by the IBJ, bank officials said.

The long-term prime rate, charged to the bank's most creditworthy customers on loans of one year or longer, is usually set 0.9 point higher than the coupon on five-year debentures issued monthly to institutional investors.
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Publication:Japan Policy & Politics
Date:Mar 12, 2001
Words:176
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