Press Conference by the Minister for Financial Services

(Excerpt)

26 March, 2002

Q.

With March almost ending, do you think it can be said that the financial crisis has gone? Also, there is a view that it is just a postponement of solving problems such as non-performing loans (NPLs). For the present, what do you think?

A.

Our task is to rigorously do what we have to do. It is true that March is an important period in terms of accounting processes and others, but we don't have a slightest idea that we can take a break here. We believe that we have to make consecutive and continuous efforts with a sense of alertness.

Therefore, we don't have such a way of thinking as you just mentioned--that the financial crisis has gone. In other words, we have been worked consistently with an idea that we are not yet in crisis. However, we don't think at all that we can take it easy. With a sense of alertness, we are determined to implement policies and plans with a best choice.

As for the point you just mentioned - the postponement of solving problems such as NPLs, we are proceeding with the removal (''off-balance'') of debts from bank's balance sheet to the debtors classified into a classification of ''in danger of bankruptcy'' and below, with a time limit of two or three years. While the FSA is strongly asking that the feasibility and adequacy of reconstruction plans is the most important point among the debtors, various methods of reconstruction have been adopted for large debtors. Therefore I think, it does not correspond to the postponement that you pointed out.