The Finance Ministry established a study group Sept. 25 to draft a law to facilitate the creation of companies whose purpose is to secure real estate to boost land liquidity.
The law is planned to go before the next regular Diet session expected to be convened in January. Ministry officials said the special purpose companies would present a new form of financial transaction, in which capital could be raised through the creditworthiness of actual assets, and would help reduce the amount of nonperforming assets on corporate balance sheets.
Increasing land liquidity was an issue discussed by Japanese and U.S. officials last week in Hong Kong as a way of supporting the Japanese economy.