Law Passed for Partial Revision of the Development Bank of Japan Inc. Law

The Law for Partial Amendment of the Development Bank of Japan Inc. Law was passed today at an Upper House plenary session of the ongoing 171st ordinary session of the Diet.

The law introduced a number of amendments designed to help Japan’s midsize and large corporations deal with funding problems arising from the global financial crisis which began in the United States last fall.

? The law provides for the strengthening of DBJ’s finances by enabling the government to make additional investments in DBJ until the end of March 2012. Investments may now be made by means of delivery bonds.

? The law extends the disposal period for government-held shares in DBJ. Whereas existing provisions　stipulated a target of “approximately five to seven years after October 1, 2008,” the revised law states that the government must dispose of all of its shares in DBJ by “approximately five to seven years after April　2012.”

? In view of the certain level of government involvement in DBJ required to ensure that crisis response business are implemented properly?government shares are in excess of the one-third of all outstanding shares it would normally hold, for example?a government review of DBJ’s crisis response business, including the future of government-held shares, will be held in or around the end of fiscal year 2011, followed by necessary actions based on the findings. Until these steps are taken, the government will not dispose of any of its shares in DBJ.

In response to these revisions, DBJ will make whatever improvements are required to provide the best crisis response business possible under budgetary measures for the current fiscal year ? and, while carefully managing risk, will work to meet the needs of each and every stakeholder, including clients, investors, and other financial institutions.