Press Conference by the Commissioner

(Excerpt)

22 April, 2002

Q.

At the recent G7 meeting, Finance Minister Masajuro Shiokawa expressed his eagerness to issue economic stimulation measures in June. He mentioned the promotion of the disposal of non-performing loans (NPLs) in conjunction with the recovery of business and industry and the taxation system. Is it an implication of additional measures, or simply a confirmation of the existing efforts?

A.

We are aware Minister Shiokawa has stated that the recovery of business comes first, tax reform second, deregulation third and the disposal of NPLs fourth in the formulation of basic policies for economic measures in the end of June.

As for the promotion of the disposal of NPLs, the ''Measures for Developing Stronger Financial System'' stated by Minister for Financial Services Hakuo Yanagisawa on April 12 firstly advocates the numerical targets for the disposal of NPLs, namely, the disposal of 50% of NPLs in the first year and major part at least 80% of them in the second year. This matches the object stated by Minister Shiokawa, meaning that the disposal of NPLs will be promoted through enhancing the functions of the Resolution and Collection Corporation (RCC) including the trust functions.

We have taken every measure since the announcement of the Government's Emergency Economic Measures in March last year, but we must make further efforts to think up ideas in the future.