The Resolution and Collection Corp. has given up its claims on loans worth dozens of billions of yen it inherited from failed financial institutions since its inception in April 1999, it was learned Thursday.
In principle, the RCC, a debt-collecting organ affiliated with the quasigovernmental Deposit Insurance Corp., is prohibited from making such debt waivers.
However, the RCC can do so in "exceptional" cases, for instance, to keep afloat a financially troubled borrower that would otherwise go under, thereby maximizing the amount of collectible loans.