Wednesday, March 13, 2013
Small-Business Turnaround Body To Begin Operating Monday
TOKYO (Nikkei)--The government has decided to start operations of the successor body to the Enterprise Turnaround Initiative Corporation of Japan, a state-backed entity that successfully helped revive Japan Airlines Co. (9201), on March 18.
With the ETIC's mandate coming to an end, the new body will take over government-led bailout efforts by focusing on small and midsize business in the next five years.
The body -- tentatively called the regional economy revitalization aid organization -- will be authorized to initiate business turnaround measures for struggling companies through March 2018.
A total of 1 trillion yen will be made available for investment or lending to small to midsize firms. Using the 3 billion yen contained in the fiscal 2012 supplementary budget, the organization will also help set up a private-sector fund that will assist corporate reconstruction.
In principle, the names of companies that receive the body's aid will not be disclosed, in order to protect their operations from negative rumors.
(The Nikkei, March 13 morning edition)