The Cabinet of Prime Minister Junichiro Koizumi will carefully review an emergency economic package adopted in early April to repair shortcomings, if there are any, according to Financial Services Minister Hakuo Yanagisawa.
The emergency measures set a two-year deadline for major banks to write off 13 trillion yen in existing loans to borrowers "in danger of bankruptcy" and further propose the creation of a stock-buying fund to purchase banks' massive cross-held shares at market value for sale at a later date.
The measures have been criticized for failing to address troubled loans to borrowers "that require attention" and for sidestepping the question of who will pay for the fund and ultimately foot the bill if the prices of the fund's purchased shares fall.