Ruling coalition legislators on Monday dropped a plan to ask a Softbank Corp.-led consortium to accept the removal of a bad-loan buyback clause from their sales contract for the nationalized Nippon Credit Bank, coalition officials said.
The team of legislators from the three ruling parties agreed that it would be difficult to secure the consortium's agreement for the contract amendment. The contract was concluded in June between the consortium and the government's Financial Reconstruction Commission, the officials said.
The clause obliges the government to buy back any outstanding NCB loans whose value falls by over 20 percent within three years from the time of the bank's sale.