Amadeusz Juskowiak

Japanese banks plan joint firm to avoid debt risk

Japans major commercial banks plan to set up a joint company to which they will transfer assets acquired by lending to developing countries to build up a reserve against possible bad loans a senior official of a major bank told Reuters

He said about 10 banks are likely to finish details of the project in a few weeks The intent is to avoid risk arising from unrecoverable debt owed by Third World countries he said