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To: James Strauss who wrote (9276)	8/3/2001 3:14:58 PM
From: Bucky Katt	Read Replies (1) \| Respond to of 13094

World's largest bank to write-off $$10 billion dollars of bad debt TOKYO, Aug 2 (AFP) - english.hk.dailynews.yahoo.com. Thursday, August 2 8:03 PM SGT Mizuho Holding's Inc, the world's largest financial group, said Thursday it would dispose of 1,200 billion yen (10 billion dollars) in bad loans by 2003 as part of a drastic restructuring plan to clean up its accounts. "The group revised up its plan to write off bad loans to 1,200 billion yen," Mizuho managing director Mitsuru Machida told a news conference in Tokyo, adding that the company would sell assets and securities, as well as looking for internal cost cuts to help cover the figure. "In the year to March 2002, we had planned to make equity capital gains of 50 billion yen, but in the revised plan, we aim to make 290 billion yen," he said. The Japanese bank told the government's Finacial Services Agency (FSA) it would slash 7,400 jobs by March 2006 -- 400 more than planned under an earlier restructuring plan announced in May. Mizuho said it would speed up branch closures in a bid to improve efficiency, pledging to shut 153 domestic outlets across Japan by March 2005 -- one year ahead of plan -- and 58 offshore branches three years early, by March 2003. The bank said it would dispose of 200 billion yen's worth of bad loans per year starting from April 2003. Prime Minister Junichiro Koizumi has made a clean up of the country's bank accounts a key pledge in a drastic economic and fiscal reform program aimed at kick-starting the world's second largest economy after a decade-long slump. Under the plan, which received strong public support in parliamentary upper house elections over the weekend, banks must dispose of all non-performing loans -- those held by bankrupt or near-bankrupt companies -- within two to three years. But concern has been raised at a potential rise in job losses after companies collapse when banks speed up bad debt write-offs. Some politicians and economists have suggested the government should step in and provide funds for the banks to help them execute the clean-up process. With total assets of 151 trillion yen, Mizuho was created in September by a three-way alliance between Dai-Ichi Kangyo Bank Ltd., Fuji Bank Ltd. and Industrial Bank of Japan Ltd.