Tokyo Barrister: Start the law firm bankruptcy

Chapter 842 Crisis!

In the meeting room, Terada's words completely shocked all the bank representatives. These bank elites are very worldly-wise people, and no matter what kind of emotions or thoughts they have in their hearts, they can often skillfully use their facial muscles to control them.

But even this group of people, after hearing the words of the Minister of General Affairs, suddenly lost control and showed extremely surprised expressions on their faces.

what? !

The saved funds are actually used to repay the US dollar bonds first? !

Isn't this equivalent to asking for sacrificing the interests of Japanese banks to take care of the interests of overseas dollar creditors? !

The bank representatives present could not accept this. This money was not used to improve operations or as a temporary bridge, but was directly used to pay the interest of other creditors. Wasn't this disregarding the interests of Toyo Bank? !

Mitsubishi Tokyo UFJ Bank representative Itabashi couldn't help himself. Even though the person in front of him was the Minister of General Affairs of the Cabinet, this request was too unreasonable! Itabashi said:

"Minister Terada, equality of creditor's rights is a basic principle. Every creditor is equal, so why are they treated differently? Why should we give up these benefits and hand them over to overseas creditors?!"

"Yes, that's right." Mizuho Bank representative Mizushima also echoed, "The major correspondent banks present here have provided a lot of funds to support the development of Japanese steel companies. Now that this situation has occurred, why don't we remember our past hard work as major correspondent banks, but instead go to rescue overseas dollar creditors first?!"

Terada was previously involved in a scandal because of Eriko.

The bank representatives present at the scene would show even less mercy to Terada.

"Minister of General Affairs, you should first consider the interests of the East, not the interests of the dollar creditors." Morita, a representative of Sumitomo Mitsui Bank, said, "Why should we sacrifice the interests of the East to safeguard the interests of the West? This is obviously not in line with your position as our Minister of General Affairs."

The bank representatives began to attack Terada one after another.

Don't think that these bank representatives are being rude by daring to express their opposition directly in front of the cabinet ministers.

The bank representatives adhered to the principle of "allocation based on noise."

It's like being a kid.

Sometimes, crying on purpose can earn you love and affection from adults and give you new toys.

The reality is the same.

These bank representatives have dealt with bureaucrats many times. They know that their style is to keep things to themselves. If they don't make a scene, they will probably be ignored.

They have to do this in order to be taken seriously.

Assign by alarm!

You have to make a fuss!

The situation in the conference room seemed to be out of control.

However, Terada remained seated, as if unfazed by the storm.

"Everyone, please listen to me." Terada said.

The authority of the Minister of General Affairs still exists.

As Terada's voice sounded, the meeting room immediately became quiet again.

The bank representatives present were waiting for the minister to give an explanation.

"We must ensure that the interest on overseas dollar bonds can be paid on time." Terada said, "I hope you can see the big picture!" The Minister of General Affairs emphasized the word "big picture" -

It urges banks not to only care about their own interests but to consider the interests of all.

"The scale of Nippon Steel's dollar financing is very large," Terada said. "In addition to the first to seventh steel mills in Japan, overseas factories in South America, Mexico, South Africa and other places are all built with dollar financing. The overall dollar debt is extremely large."

"You say that I am biased towards foreign dollar creditors. Then please think carefully, is this really the case?" Terada's voice continued:

"If Nippon Steel is unable to pay the dollar interest on time, what will happen?"

The Minister of Internal Affairs and Communications directly asked the bank representatives present.

These bank representatives certainly knew what the consequences would be.

The consequence is that Nippon Steel’s US dollar bonds will soon be downgraded to junk status.

By then, it will inevitably cause turmoil among overseas creditors.

"You should all understand the special status of Nippon Steel in the East." Terada said, "The collapse of Nippon Steel will not only affect Nippon Steel. If Nippon Steel cannot repay the US dollar interest on time, then overseas credit rating agencies will not only lower the rating of Nippon Steel, but will also significantly lower the credit scores of a series of Chinese companies."

"Excuse me, representatives present here at this moment, can you bear the consequences?!" Terada raised his voice.

"I'll be frank," Terada said. "You all know how unstable the overseas situation is. Due to the tariff measures of the United States, there may be more than just tariff barriers in North America in the future, including in Europe and other Oceanic countries. Our companies have begun to prepare for a rainy day and are preparing to open factories in overseas countries to circumvent tariffs."

"These companies set up factories overseas and issued a large number of US dollar bonds for financing. If Nippon Steel were to encounter problems at this time, the ratings of a large number of Japanese companies' overseas bonds would be significantly downgraded. Do you know what the consequences would be?"

"That is, our country's massive investment plans for building factories overseas will result in a break in the capital chain!" Terada issued a clear warning.

All the bank representatives present gasped.

You know, the economy in Japan is booming right now.

A large number of Japanese companies went overseas to invest.

At the height of the craze, there was even a slogan called "Buy New York".

This is enough to reflect Toyo's enthusiasm for entering overseas markets.

According to Minister Terada, if Nippon Steel were to encounter problems, the bonds of other Japanese companies would be downgraded, and the dollar collection for overseas investment would be interrupted, and many overseas factories under construction would be shut down. This would in turn drag down domestic business performance, forming a vicious cycle!

Terada's level is superb.

He is worthy of being the Minister of General Affairs of the Cabinet.

With just a few short sentences, he pointed out the current dangerous situation.

The bank representatives present also broke out in a cold sweat. You know, the Japanese economy is booming right now, with new investment projects starting up everywhere. The stock market is breaking new highs. The entire economy is thriving and prosperous.

But who could have imagined that beneath this appearance——

Japan is so close to an economic crisis!

"Next, I have something else to say to you." Terada's voice sounded again.

(End of this chapter)