Press Conference by Taro Aso, Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services

(Excerpt)

(Tuesday, May 21, 2013, 8:39 am to 8:45 am)

[Questions and answers]

Q.

I’d like to ask you about personal guarantees. Last week, the Prime Minister, in a speech he gave to Japan Akademeia, said that personal guarantees are a hindrance to the emergence of start-up companies, and I understand that the Financial Services Agency is also studying this issue. I’d like to hear your thoughts concerning personal guarantees.

A.

As you know, there are various opinions concerning personal guarantees, and a report has also been published. The report presents a direction for solutions concerning the issue of the need for personal guarantees when contracts are concluded and executed. It’s true that in no other country in the world are personal guarantees as entrenched as they are here, and because various proposals are being made, it is not for me alone to decide which of these proposals is the best. I think it’s important that various views are being aired, but I also think the fact that personal guarantees are impeding the emergence of new companies needs to be considered, and I think we ought to think about how to make it easier to launch companies.

(End)