Debt write-off unlikely before general election

The major concern for the Japanese economy still remains the banking industry. There has not been any real growth in the sector and significant bad debt in the banking sector has undermined confidence in the community, according to fund managers. The Topix bank sub-index has fallen 22.36% for the two years to 30 March, compared with a rise of 2.17%, in yen terms, in the Topix. Sheila Martin, director of Japanese Equities at Clerical Medical, says: "The bad debt problem needs to be worked out before any recovery will be seen." Although there have been talks by the government for banks...