Finance Minister Kiichi Miyazawa presented a scheme Thursday that would extend a government guarantee to a proposed private-sector fund that would purchase cross-held shares from ailing institutions, Financial Services Minister Hakuo Yanagisawa said.
The fund is one idea being discussed to ease selling pressure that in part is coming from banks unloading a portion of their cross shareholdings to make up for losses stemming from corporate debt forgiveness.
"If there are losses, fiscal measures may be considered," Yanagisawa quoted Miyazawa as saying.