Panel Calls on Govt to Sell All Shoko Chukin Shareholdings
Tokyo, Feb. 17 (Jiji Press)--An industry ministry experts panel came up with a report Friday proposing the Japanese government sell all its shareholdings in Shoko Chukin Bank, a government-affiliated lender for small and midsize companies.
The government will aim to sell the 46 pct stake within two years after revising the law governing the financial institution. To do so, it plans to introduce an amendment bill to parliament during the ongoing session.
The shares can be sold for as much as 100 billion yen, people familiar with the matter said.
The panel, in the report, also suggested that the government keep investing in the lender's special reserve fund and maintain the low-cost crisis response lending program.
This recommendation for the government's continued commitment to Shoko Chukin even after the privatization is aimed at facilitating financing to less creditworthy small businesses, an official of the ministry said.
[Copyright The Jiji Press, Ltd.]