Press Conference by Shozaburo Jimi, Minister for Financial Services

(Excerpt)

(Friday, July 29, 2011, from 9:19 a.m. to 9:36 a.m.)

[Questions & Answers]

Q.

At the July 26 session of the House of Representatives' Special Committee on Reconstruction after Great East Japan Earthquake, the bill to establish an organization to support compensation for nuclear accident damage was approved in response to Tokyo Electric Power's nuclear power station accident, and a supplementary resolution was adopted in relation to that. In the market, there are various speculations, such as that stakeholders may be required to cooperate or that the cabinet decision made on June 14 may be reviewed. Put simply, the responsibility of shareholders will be pursued and financial institutions with outstanding loans will be required to cooperate. The cabinet decision to the effect that excess debt should be avoided, which was made on June 14, may be reviewed depending on circumstances. Am I correct in understanding that those are the meanings of the supplementary resolution?

A.

I would like to refrain from making comments on the potential impact on the financial institutions concerned based on the assumption that a specific listed debtor company will fall into the status of excess debt.

The bill to establish an organization to support compensation for nuclear accident damage, which is now under deliberation in the Diet, is intended to ensure the quick and appropriate payment of compensation for damage and also ensure the stable supply of electricity, in relation to the damage compensation case involving Tokyo Electric Power Company, so I am hoping for its early enactment.

In any case, the Financial Services Agency believes that it is important to avoid an unnecessary and unexpected adverse impact on the stability of the financial and capital markets as a whole, so we will continue to carefully monitor the conditions of the markets.

(End)

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