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Japan to bail out troubled corporations
Japan is creating an Industrial Revitalization Organization, a nationwide task force devoted to revitalizing corporations and industries on the verge of collapse. This government organization to be headed by Prime Minister Junichiro Koizumi and the Headquarters for Strategy of Revitalization of Industry and Enterprises and Employment is expected to submit a relevant bill to establish the organization and its basic guidelines to the regular Diet session as early as January 2003. The goal of the organization is to, within five years time, aid troubled corporations in accelerating bad-loan disposal and warding off deflation in an attempt to reconstruct these corporations within three years. The organization plans to purchase bad loans from secondary creditor banks with the financial aid from public and private sectors.