Press Conference by Shizuka Kamei, Minister for Financial Services

(Excerpt)

(Tuesday, December 1, 2009, from 8:45 a.m. to 8:55 a.m.)

[Opening Remarks by Minister Kamei]

Good morning.

I am glad that the bill to prevent curbs on new loans and forcible collection of outstanding loans (Bill concerning Temporary Measures to Facilitate Financing for SMEs, etc.) was enacted yesterday. As the bill is scheduled to be put into force on December 4, we have completed the related work of revising the Financial Inspection Manual and the Supervisory Guidelines, regarding which a press conference was held yesterday. We intend to ensure that bankers and borrowers understand that our basic approach to financial administration will change drastically.

As I have said over and over again, I regret to say that this law alone will not enable small and medium-size enterprises, small shops and salaried workers to overcome their current situation.

At the cabinet meeting that ended a little while ago, it was agreed that we will decide the contents of the new economic package and the supplementary budget this week. At a meeting yesterday of the Basic Policy Cabinet Committee’s working group, it was decided that the group will hold a further debate on the contents of the supplementary budget. While opinions have been expressed from various perspectives with regard to the contents of the supplementary budget, I have been arguing that aggressive, bold efforts should be made to stimulate private demand and create domestic demand through government expenditures, as private-sector demand is particularly weak, so that measures suited to the actual state of the economy and the actual circumstances of each region will be taken. I will try to have my argument reflected in the supplementary budget.

In addition, I hope to ensure the enactment of the bill for the review of the postal businesses (Bill concerning the suspension, etc. of the disposal of shares in Japan Post Holdings Co., Japan Post Bank and Japan Post Insurance) by the end of the extended Diet session.

I do not have anything else to tell you about. Please ask me questions.

[Questions and Answers]

Q.

Let me make sure about one thing. Did you say that the bill to facilitate financing for SMEs will be put into force on December 4?

A.

Yes, I did. It is so arranged that the procedures will be completed through a round-robin cabinet meeting(without holding an actual meeting). I have instructed my staff to complete preparations by then. We have been implementing various procedures at an unprecedented speed. In this situation, we would like to finish the procedures as soon as possible.

I am glad to say that individual financial institutions have already prepared themselves for the implementation of the provisions of this law. Therefore, senior officials of the FSA (Financial Services Agency) will actively visit various regions across the country to encourage necessary actions.

(End)