The 15 applicant banks for public funds said Monday they will write off 9.3 trillion yen in sour loans for fiscal 1998, ending this month, in an attempt to end the bad-loan problem.
Most of the chief bankers acknowledged their management responsibility in relying on public funds. They said their task now is to enact restructuring plans, including reductions in personnel and the number of branches, in return for the public money.
The Financial Reconstruction Commission met separately with each chief earlier in the day to confirm their commitments in the final step before it approves the capital injection totaling 7.46 trillion yen on Friday.