Secondary losses from ‘jusen’ housing loans settled

JIJI

Accumulated losses resulting from the recovery of nonperforming loans once held by defunct “jusen” housing lenders have been settled at ¥1.402 trillion, data show.

The government-affiliated Resolution and Collection Corp. said the so-called secondary loss, or the gap between the amount of collectable loan claims and the price the institution paid when it acquired the loans, came to ¥125.1 billion in the year that ended in March.

The accumulated losses will be divided equally between the government and private financial institutions, according to officials.

Because there are sufficient funds available to cover the losses, no additional taxpayer money will be spent to clean up the mess other than the ¥680 billion used when the jusen collapsed.

Koichi Ueda, president of RCC, said Wednesday the institution has adequate retained earnings and donations to cover the losses.

The gains include profits from the collection of loans not held by the jusen and the trading of funds provided by the Bank of Japan and major private banks via the financial stability fund, he said.