An entity being created to salvage companies unable to repay their bank loans but deemed potentially viable will complete its purchases of nonperforming loans within two years to achieve its purpose as soon as possible, the government said Wednesday.
The measure is aimed at speeding up banks' efforts to dispose of bad loans, a problem Prime Minister Junichiro Koizumi hopes to resolve by the end of fiscal 2004, an official said.
The official disclosed the plan Wednesday at a preparatory government office for the entity, tentatively named the Industry Rehabilitation Corp., while briefing members of the ruling Liberal Democratic Party on the issue.