Kiichiro Furusawa, chairman of the Trust Companies Association of Japan, on Thursday urged banks to promote writeoffs of problem loans even if it means falling into the red.
Furusawa's comments came at a press conference ahead of book closings for fiscal 2000, which ends March 31.
Furusawa also said a temporary delay should be permitted in implementing promised management rehabilitation programs since banks may be unable to write off their huge bad-loan problem without falling into the red.