The Financial Reconstruction Commission said Wednesday that it will delay for one month the planned sale of the nationalized Nippon Credit Bank to a consortium led by Softbank Corp. due to political pressure over one of the clauses contained in the contract.
The FRC had been scheduled to sell NCB to the group on Aug. 1. The delay comes against the backdrop of growing calls from the ruling and opposition parties to drop the clause obliging the government to buy back certain loan assets from the group if they become irrecoverable.
Under the clause, the state-run Deposit Insurance Corp. is required to buy back loans if their market value drops by 20 percent or more in three years.