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OSAKA — The Osaka District Court sentenced the former managing director of the failed Kizu Credit Cooperative to a two-year prison term Tuesday for extending an illegal loan to a construction-related firm.

According to the court, Masaaki Kawamoto, 68, made a 2.2 billion yen loan to a construction firm in Neyagawa, Osaka Prefecture, without securing collateral.

Kawamoto was also responsible for an illegal banking procedure in which he allowed a construction firm to close a 1.8 billion yen fixed deposit account that the failed Osaka-based financial institution had secured as collateral, the court said.

Prosecutors had demanded a three-year prison term.

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