Policy chiefs of three opposition parties agreed Monday to oppose a government plan to inject public funds into ailing Long-Term Credit Bank of Japan.
Policy chiefs of the Democratic Party of Japan, Shinto Heiwa (New Peace Party) and the Liberal Party claim that the government's action would mean that public money would be used to compensate for losses suffered by LTCB when it relinquishes claims to 520 billion yen in loans to three nonbank financial affiliates.
LTCB announced a restructuring plan last week that includes releasing claims on the loans to nonbank affiliates such as Japan Leasing Corp., retreating from all overseas operations and cutting 20 percent of its workforce.
The three parties are to continue talks today on a counterproposal to the financial stabilization bills already submitted to the Diet by the government and the ruling Liberal Democratic Party.