The Economic Times Saturday, February 02, 2002
Bad loans at Japanese banks swell to $277b AFP SATURDAY, FEBRUARY 02, 2002 TOKYO: Bad loans held at Japanese banks rose to 36.8 trillion yen ($277 billion) at the end of September 2001, up 9.5 per cent from six months earlier. The figure was the highest level of bad loans since the end of March 1999, the Financial Services Agency said late Friday. The FSA survey covered 136 banks, including 17 major ones. Bad loans held at the 17 banks totalled 22.5 trillion yen, up 2.5 trillion yen, and those at 119 regional banks rose by 600 billion yen to 14.2 trillion yen. "Bad loans rose slightly as of the end of September last year due to worsening financial conditions of borrowers," the agency said in a statement. By category, bad loans with interest payments at least three months overdue rose about 2.6 trillion yen to 13.5 trillion yen. The amount of loans extended to borrowers at risk of going under and borrowers already bankrupt grew 600 billion yen to 23.3 trillion yen. Prime Minister Junichiro Koizumi has pledged to reduce the level of banking bad loans to manageable levels within three years in a bid to restore the financial industry's standing. Copyright © 2002 Times Internet Limited. All rights reserve
