Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Tuesday, March 8, 2011, from 9:18 a.m. to 9:38 a.m.)

[Opening Remarks by Minister Jimi]

Today, I do not have anything particular to report to you.

[Questions & Answers]

Q.

Regarding Takefuji, the Financial Services Agency (FSA) has not revoked the registration of the company as a money lender, as I mentioned when I asked you about this matter, which means that the FSA is still responsible for supervision. From the standpoint of the supervisor, do you think that the rehabilitation process is proceeding without any cause for concern in terms of both content and speed?

A.

The rehabilitation of Takefuji is being carried out in accordance with the Corporate Reorganization Act, so the procedures such as the appointment of an administrator and the acceptance of debt claims from creditors, including people to whom reimbursement of overpayment is due, are implemented under the law mainly by the judicial authorities with the involvement of a court. The administrative, legislative, and judiciary powers are separated in Japan, and this case is now undergoing the procedures of the Corporate Reorganization Act. I believe that in a democratic country, it is common sense that government officials should not comment on such judicial procedures.

Q.

If so, is it possible that after the completion of the procedures under the Corporate Reorganization Act, which are the judiciary procedures, the FSA will review the appropriateness of the registration of the new Takefuji - I do not know how Takefuji will be renamed - under the Money Lending Act?

A.

I would like to refrain from making comments with prejudgment. However, as Japan is a constitutional country, I would like to do our part in a strict and fair manner in accordance with law. At the same time, Japan is a democratic country, and it is essential for administration and politics in a democratic country to obtain the understanding of most of the people.

Q.

Let me ascertain one point regarding the case of Takefuji. How do you feel about the large number of claims for reimbursement of overpayment, which amounted to 776,000 as of the end of February and which may increase to as much as one million?

A.

As for the number of claims, those claims have arisen as a result of a ruling issued by the Supreme Court. I am aware of the announcement that the number of claims received by the end of February totaled 776,000, as you mentioned just now. However, the FSA will refrain from making comments on the procedures implemented in accordance with the Corporate Reorganization Act. Generally speaking, I understand that a plan for the repayment of debts owed since before the reorganization procedures is formally presented in a reorganization plan.

Q.

But considering that the number of potential creditors was initially estimated at more than two million and that the debt claim application form has failed to be delivered in some cases, many people probably have the impression that the actual number of claims was high. What is your impression?

A.

I have heard that the debt claim application form was sent to 1.3 million people and that some people refused to receive it. In any case, I understand that claims against Takefuji for reimbursement of overpayment are being handled in a strict and fair manner with the involvement of a court in accordance with the Corporate Reorganization Act. Notifying people to whom reimbursement of overpayment is due is a procedure implemented in accordance with the Corporate Reorganization Act. As the FSA is an administrative agency, we should refrain from making comments under the rules of the separation of the administrative, legislative, and judicial powers.

(End)