The Japan External Trade Organization New York (JETRO NY) released a newsletter today highlighting Japan's new Industrial Revitalization Corporation (IRC).

It can be viewed at: http://www.jetro.org/newyork/focusnewsletter/focus20.html

• Japan's IRC Moves to Resolve Excess Corporate Debt over a Period of Five Years

As Japan disposes its non-performing loans, many fundamentally sound companies need to maintain access to the capital necessary to fund their ongoing competitiveness. Where revitalization is possible, Japan's newly formed IRC will act as a neutral coordinating body. It will move to purchase nonperforming debt over a period of two years, and provide support to struggling companies that meet established criteria that demonstrates an ability to reorganize themselves within three years or less.

• IRC to Make Use of the Law on Special Measures for Industrial Revitalization

 If a company can achieve one or more aspects of defined criteria that has been developed, it shall be eligible for policy-support measures based on an individualized restructuring plan.

• Japan's IRC Also Addresses Problems Relating to Overcapacity and Excess Supply

In the case of business sectors that are facing a systemic decline, which indicates a marked disparity between demand and potential supply with no apparent resolution in sight, these fields shall also be designated as eligible for policy support measures.

• Employment Measures Enacted to Facilitate Corporate and Industrial Revitalization

The Japanese government will also implement policies to stabilize employment. For workers experiencing unavoidable terminations or transfers, the government will implement policies to develop an employment safety net.

• Additional Measures Enacted to Facilitate the Reorganization Process

To accelerate the approval of mergers and to clarify procedures, the Japanese Fair Trade Commission will take steps that will enable merger approvals to conclude as quickly as possible.

Focus is published and disseminated by JETRO New York, in coordination with KWR International, Inc., New York, NY 10023, Tel: 212-532-3005, Fax: 212-799-0517, E-mail: kwrintl@kwrintl.com. JETRO New York is registered as an agent of the Japan External Trade Organization, Tokyo, Japan and KWR International, Inc. is registered on behalf of JETRO New York. This material is filed with the Department of Justice where the required registration statement is available for public viewing.

For more information contact: JETRO New York
Satoshi Miyamoto, 212/997-0416, Fax: 212/997-0464
E-mail: Satoshi_Miyamoto@jetro.go.jp.