Date: March 24, 2014
At the 242nd meeting of the Policy Board today, it was decided that the Deposit Insurance Corporation of Japan (DICJ) would purchase specified difficult recovery claims (third purchase) based on Article 101-2, Paragraph 3 of the Deposit Insurance Act as follows:
Changes in the number of requests for consultation about and provisional applications for the purchase system of the specified difficult recovery claims
Provisional applications for the current purchase (third purchase) were accepted before DICJ’s announcement of measures to improve the system on December 26 last year. Of the 16 claims included in the current purchase, the improvement measures are applicable to a total of five claims, including four claims for which repayment is ongoing in accordance with the contracts and one claim regarding which debt guarantee is provided by a guarantee corporation. There is no claim regarding which a financial institution has bought back the right to reimbursement from a guarantee corporation.*
The number of provisional applications for the next purchase (fourth purchase), which was accepted between November last year and the end of January this year, came to 125. The proportions of claims to which the improvement measures are applicable rose steeply compared with the current purchase (third purchase) as follows*: Proportion of claims for which repayment is ongoing in accordance with the contracts: Approx. 40%, up from 13%
Proportion of claims regarding which debt guarantee is provided by a guarantee corporation (including those regarding which the right to reimbursement has been bought back): Approx. 40%, up from 7%.
Since the third purchase, the number of financial institutions which file provisional applications without individual consultation and the number of those which file provisional applications for two or more claims have increased, indicating that the purchase system is gradually taking hold.
Since February this year, DICJ has been accepting provisional applications on a round-the-year basis.
*Claims for which repayment is ongoing and which are guaranteed are counted in each case.