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The ruling Liberal Democratic Party’s task force on bad loans held by banks convened its first hearing Tuesday to discuss a new kind of lending that would make corporate fundraising easier.

The Special Research Council to Promote the Total Plan of Financial System Revival told the relevant ministries to prepare issues for the group’s examination by July 6, said Nobuteru Ishihara, an LDP member.

The process is expected to go smoothly, as there is no clash of interests between the ministries, banks or companies involved, Ishihara said.

The LDP aims to submit bills to enable such lending and revise the present law at an extraordinary Diet session scheduled to be convened in late July, he said.

Implementation of the revision would enable banks to sign commitment contracts with firms so that the firms can borrow at any time and with a preset limit in return for fees.

Under such contracts, firms can ensure a certain amount of funds in case of emergency and banks can earn commitment fees in addition to loan interests.

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