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Japan's Jimoto Holdings to Come under State Control

Japan's Jimoto Holdings to Come under State Control

   Tokyo, May 20 (Jiji Press)--Japanese regional banking group Jimoto Holdings Inc., which has ailing regional lender Kirayaka Bank under its wing, will come under the effective control of the Japanese government, informed sources said Monday.
   The government will hold 63 pct of Jimoto Holdings' voting rights as early as late June, according to the sources.
   In the fiscal year to March 2024, the banking group suffered a consolidated net loss for the second consecutive year mainly due to the deterioration of business at Kirayaka Bank, based in the northeastern Japan prefecture of Yamagata.
   The government will acquire the voting rights as Jimoto Holdings plans to forgo dividends for the preferred shares it issued to the government at the time of a public fund injection.
   In 2009, the government injected 20 billion yen in public funds into Kirayaka Bank based on the law aimed at strengthening financial functions. Last month, Jimoto Holdings, headquartered in the northeastern Japan city of Sendai, said it has become difficult to repay the public funds by the deadline in September this year.

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AFP-JIJI PRESS NEWS JOURNAL


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