Suruga Bank Mulls Forgiving Irregular Loans to Share-House Owners

Economy

Tokyo, Nov. 21 (Jiji Press)--Suruga Bank <8358> is considering writing off loans that it has extended to share-house owners through irregular operations, on condition that the owners abandon their properties, informed sources have said.

The move comes ahead of the Nov. 30 deadline for property owners to apply with the Numazu, Shizuoka Prefecture-based bank for reduction of loan principals.

The possible loan forgiveness would be part of the scandal-tainted regional bank's efforts to sever its ties with its founding family, which is considered as having been a hotbed of irregularities, and accelerate management rehabilitation, according to the sources.

The bank plans to sell properties abandoned for loan cancellation to third parties, the sources said.

As of the end of September, there were more than 1,200 share-house owners with loans owed to Suruga bank. The loans totaled 199.2 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press