Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, January 26, 2024, 10:32 am to 10:42 am)

Q.

The Financial Services Agency (FSA) calls for public comments on the proposed revision of the Cabinet Office ordinance to extend the upper limit to periodic investments that could be made by credit card payment from 50,000 yen to 100,000 yen per month. I think that the raising of the upper limit for credit card-based periodic investments is this year’s hot topic along with the start of the new NISA program. I, too, am waiting for the raising because I want to accumulate points, but please tell us about your opinion on the prospect for the timing of such revision and the necessity of raising the upper limit for credit card-based periodic investments. 

A.

As you pointed out now, the current laws and regulations have set an upper limit of 100,000 yen per month for credit card-based periodic investments, but the practice of limiting them to 50,000 yen taking the cycle of settlement by credit card companies into account has taken root.
In light of this practice, the Financial System Council offered its opinion in its report in December of last year, with the raising of the upper limit for periodic investments to 100,000 yen per month under the new NISA scheme launched in January of this year in mind, saying that it was appropriate to review the system as required so that the practical restriction of the upper limit to credit card-based periodic investments to less than the 100,000 yen set under the current laws and regulations was resolved.
The FSA believes that this recommendation is important in backing up continuous asset building by offering investors more methods of payment for greater convenience, and in line with the recommendation, the FSA called for public comments on the Cabinet Office’s revised plan as you pointed out.
With respect to the timing for revision, from the viewpoint of improving the convenience for investors early, we will make preparations so that a revised law is promulgated and enforced within March of this year.

Q.

One month will soon have passed since the Noto Peninsula Earthquake occurred. Housing loans will be a burden on earthquake affected people when they continue to live there in the future, and you mentioned the guidelines for reducing or exempting housing loans several times in the past. Please tell us about your thoughts on the significance of these guidelines again. These guidelines are still not so well known. Please also tell us about your thoughts on the necessity of making them known and methods to do so, if any.

A.

I understand that the Guidelines for Restructuring Debts of Natural Disaster Victims of natural disasters about which you asked were developed following the Great East Japan Earthquake. By using these guidelines, earthquake affected people can be exempted from debts while avoiding disadvantages associated with bankruptcy procedures such as the avoidance of debt reorganization being registered as part of personal credit information, they can receive subsidies from the government for a lawyer’s and other expenses incurred by going through procedures, and they can leave part of the property in their hands. Use of the guidelines enable them to enjoy these and other benefits.
I believe that these guidelines are highly significant as a measure to help earthquake affected people to reconstruct their lives as they are troubled by repayments for housing loans.
The FSA is asking financial institutions in stricken areas to respond properly to requests for advice on the use of these guidelines so that they are utilized, and at the same time, in addition to posting the guidelines on its website, the FSA is striving to make them widely known in cooperation with related organizations.
I assume that some earthquake affected people do not know of the existence of the guidelines, and we will strive to make them as widely known as possible, and we would appreciate it if news media could work with us to make it known that the means of using the guidelines for debt reorganization is available and provide this information to earthquake affected people who are troubled by housing loans and other problems.

Q.

You have already talked about everything I wanted to ask you about, but can I have a few words on your thoughts on how, as the Minister of Finance, you want to support the lives of affected people using these guidelines?

A.

I myself experienced the Great East Japan Earthquake as an event that was close to me and saw many people hit by the disaster, lose the houses they had built by taking out a housing loan before they completed the repayment of the loan, and end up suffering from a double loan. At that time, I witnessed a few cases in which these guidelines enabled affected people to reduce such a burden considerably, and therefore, I hope that people of the Noto Peninsula Earthquake, too, will learn that these guidelines are available and use them if they wish to.