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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (36800)	4/15/2003 12:55:20 PM
From: AugustWest	Read Replies (2) \| Respond to of 57110

coming to a theatre near you.... Japan Agency Will Buy Bad Loans TOKYO - The agency responsible for turning around Japan's debt-laden companies will buy 7.3 trillion yen ($60.6 billion) in bad loans over the next two years, the government said Tuesday. The Industrial Revitalization Corp. is scheduled to start operations next month. Its office will be set up Wednesday. The IRC will buy problem loans from corporate borrowers whose businesses are deemed salvageable to try to put them back on the road to profitability. If the company posts a loss, the government will be stuck with the bill. But critics say the IRC could end up saving politically connected companies while allowing the government to put off a more aggressive cleanup of banks' massive pile of bad loans. The Cabinet Office which is setting up the IRC said the agency will make a profit in its third year. The IRC will post an accumulated profit of 42 billion yen ($349 million) by the end of five years, it said. Bad loans at the nation's banks stand at a total of 40 trillion yen ($332 billion), according to government estimates. Japan has been struggling with a slowdown for more than a decade. The government has promised economic reforms by speeding up the disposal of bad debts and helping companies to revive. story.news.yahoo.com