30 October 2001, 08:14  Yanagisawa to discuss liquidation rules with Shiokawa

TOKYO, Oct. 30 (Kyodo) - Financial Services Minister Hakuo Yanagisawa said Tuesday he is ready to hear a proposal by Finance Minister Masajuro Shiokawa on the establishment of rules to govern the liquidation of heavily debt-ridden companies deemed impossible to rehabilitate. "I will listen to the proposal carefully," Yanagisawa told a press conference. He said, however, it will not be easy to establish such rules because making a judgment on how much debt qualifies as excessive "is difficult." On Monday, Shiokawa proposed that rules be established to liquidate companies whose deficits exceed their assets and whose rehabilitation is deemed impossible in order to accelerate the disposal of nonperforming loans at Japanese banks. While noting the Financial Services Agency has authority over the issue, Shiokawa said he thinks it is appropriate that banks begin liquidation of companies with capital deficits that have not paid dividends for a certain number of years and have little possibility of recovering, even after receiving a huge amount of debt write-offs.

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