The Industrial Revitalization Corporation of Japan (IRCJ), which began operation in May this year, recently decided to support four firms. The IRCJ will subsequently purchase the loan assets of these four firms from lenders other than their main bank, decide on a restructuring plan and then implement it. Individual financial institutions, major banks in particular, are establishing a subsidiary specializing in corporate revitalization.
The second point with respect to policies appropriate for avoiding future imbalances relates to structural policies that are essential to promote productivity growth and to enhance the flexibility and competitiveness of the economies in question. In many cases, the restoration of competitiveness does not depend only on correcting relative costs and prices.