March 09, 1999
| | |
| ||
| March 09, 1999 | atimes.com | |
| ||
| Japan Economy Banks request 7.45 trillion yen in public funds TOKYO - Fifteen major Japanese banks Thursday officially applied to the Deposit Insurance Corp. for a total of 7.45 trillion yen in public funds, under a government program to help them recapitalize.In exchange, the government will receive preferred stock in the banks valued at 75 percent of the amount injected, or 5.55 trillion yen. The shares will be convertible into common stock after a certain period. Preferred shares to be issued by Daiwa Bank (TSE:8319), Mitsui Trust & Banking Co. (TSE:8401), Chuo Trust & Banking Co. (TSE:8408) and Toyo Trust & Banking Co. (TSE:8407) will be convertible three months after issuance, the shortest period among the banks. The longest will be the seven-and-a-half years for Fuji Bank (TSE:8317) stock. Seven banks, including Fuji Bank and Dai-Ichi Kangyo Bank (TSE:8311), will issue stock with two convertibility terms. Banks with shorter periods are generally considered to be financially shakier than the others. The Financial Reconstruction Commission does not intend to convert stock immediately after their respective periods pass, but it is expected to make use of its right of conversion to influence bank management. Dividends on the preferred shares are expected to range from 0.5 percent to 2.0 percent, with healthier banks offering lower returns. Even for weaker banks, dividends can be lowered by shortening convertibility periods. (Asia Pulse/Nikkei) | |||||||||
 |
|
Front | China | Southeast Asia | Japan | Koreas | India/Pakistan | Central Asia/Russia | Oceania Business Briefs | Global Economy | Asian Crisis | Media/IT | Editorials | Letters | Search/Archive |
back to the top ©1999 Asia Times Online Co., Ltd. |
