Response In Light Of The Impact Of U.S. Tariff Measures - Statement by KATO Katsunobu, Japan Minister Of Finance And Minister Of State For Financial Services

In light of the impact of U.S. Tariff Measures, MOF and FSA request and respond as follows. We appreciate your continued cooperation.

1. (1) Requests to financial institutions

   On April 3, along with the relevant ministries and agencies, we sent a letter of request titled "Request for financial measures to the relevant financial institutions in light of the possible impact of additional US tariffs on automobiles." In order to prevent serious financial difficulties at SMEs and other businesses affected by U.S. Tariff Measures, we ask that financial institutions continue to actively monitor business conditions and financing needs through the establishment and operation of consultation desks, etc. In addition, we also make a request for financial institutions to provide attentive cash flow support, including deferment of payment and alteration of the payment terms.

   In particular, we request that government-affiliated financial institutions continue to provide more attentive cash flow support, by actively proposing the use of safety net loans with eased requirements through the special consultation desks.

2. (2) Increasing the frequency of reporting and disclosing alteration of the payment terms by financial institutions.

   In order to steadily monitor financial institutions’ attentive cash flow support and disseminate such situation, we will increase the frequency of reporting and disclosing alteration of the payment terms. Today, reports are collected and published every six months, but from this April, we request that banks and government-affiliated financial institutions submit the reports every month and financial cooperatives every three months.

   We ask for your understanding and cooperation.

3. (3) Establishment of "Telephone consultation services regarding the Impact of U.S. Tariff Measures"

   The FSA will establish telephone consultation services as soon as possible, to provide consultation for businesses affected by or concerned about the impact of the U.S. Tariff Measures. We welcome a wide range of consultations, including those on concerns regarding future financing.