Debt moratorium may delay work to solve real problems

By Shinya Ajima

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9 Comments

timtak at 10:46 AM JST - 18th October

This sounds like one of the worst policies ever thought up by any politician.

It might (only might) be okay if all small businesses were all trying their upmost to survive, but there will be those forcing businesses to deliberately run up massive debts that they know that they will never have to repay, just as they did during the bubble.
Scrote at 11:14 AM JST - 18th October

By forcing a company into liquidation the banks stand to lose money. Now, instead of doing that, they can transfer all their bad loans to the government and be reimbursed in full after three years.

All this does is transfer risk from the banks to taxpayers. It encourages banks to make risky loans. I suppose all the "problem" loans made to gangsters will be transfered to the government too. What a way to waste taxpayers money. It's hardly surprising that this idea comes from the ex-LDP clown Kamei.
GW at 08:25 PM JST - 18th October

stupid idea, it shud be clear to all that this plan wud only delay the death or downsizing of these firms, no sense throwing good $$ after bad
Altria at 09:52 AM JST - 19th October

Worst idea ever. Seriously.

The bank lends me a few hundred million yens for my crappy 'business', since its insured by the government, I spend it all on hostesses and pachinko, the bank says 'too bad, we'll have to charge our loss to the government'.
Gaijinocchio at 10:09 AM JST - 19th October

Wait, didn't Japan do this already in the form of zombie banks that existed only to loan money, and were propped up by the government when businesses couldn't repay debts?

That was a catastrophe, so if this is the case, why are they doing it again?
majimeaussie at 12:27 PM JST - 19th October

ShinGinko Tokyo anyone???
GW at 06:35 PM JST - 19th October

how about my bank letting me off my mortgage for 3yrs, then I will set aside what I shud pay & give it to them in 3yrs time as a lump sum so I can knock off some princial, huh how bout it!
bdiego at 07:25 AM JST - 20th October

Wow, and I thought our politicians were idiots. They still are, but man this takes the cake for dumbest most poorly thought out crack smoking idea.
Delarapier at 12:01 PM JST - 20th October

Now entering "Weird country".