The Financial Services Agency on Tuesday urged all banks in writing to use the state-backed Industrial Revitalization Corp. of Japan, according to Financial Services Minister Heizo Takenaka.
The FSA’s request comes on the heels of the IRCJ’s announcement Monday that it will assist in the restructuring of Mitsui Mining Co., the fourth firm to join its turnaround program.
Sadakazu Tanigaki, minister in charge of industrial revitalization, said he had asked Takenaka earlier in the day to encourage banks to use the IRCJ.
Tanigaki said that the IRCJ’s decision to bail out Mitsui Mining and some other firms will probably spur banks to use the state-backed body.
The IRCJ began operations in May to help rehabilitate heavily indebted companies deemed salvageable.
In addition to Mitsui Mining, the IRCJ decided last week to bail out condominium builder Dia Kensetsu Co.; Kyushu Industrial Transportation Co., the largest bus operator in Kumamoto Prefecture; and the Usui department store in Koriyama, Fukushima Prefecture.
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