Newly appointed financial and postal services minister Shizuka Kamei says lenders have an obligation to help borrowers survive tough times — one reason why he's pushing to pass a bill that would put a moratorium of about three years on loan payments for small and midsize companies.
"Normally, if borrowers are having a hard time, lenders should voluntarily help them to survive and grow so that the state doesn't have to intervene," Kamei said in a joint interview with media organizations Friday. "That kind of economic model is the best, but the reality is different."
Although Kamei proposed the moratorium to help smaller companies beat the global credit crunch, some worry the move might backfire and hurt financial institutions by increasing their exposure to bad loans.