Mizuho Financial Group Inc. plans to repay all public funds received during a government-backed capital injection by the fall of 2006 and form an alliance with the Bank of New York to boost profitability, sources said Friday.
Mizuho is now confident it will be able to use earnings and reserves to pay back the remaining 1.5 trillion yen in public funds by the middle of fiscal 2006, some six months earlier than initially planned, they said.
The government has injected a total of 12.4 trillion yen in public funds into Mizuho and other Japanese banks to help stabilize the ailing banking system over the past several years. The injection was made through the purchase of preferred shares or subordinated bonds