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Wednesday, 15th February 2012
In General Japan News,

Japan may fund reconstruction with dormant bank accounts

The government in Japan is contemplating using money from dormant bank accounts to help contribute to the reconstruction efforts following last year's earthquake and tsunami.

A reported 85 billion yen (£690 million) worth of bank deposits is categorised as inactive every year, with some 35 billion yen (£285 million) of this later claimed by account holders.

Now, the government is considering using the remaining 50 billion yen (£407 million) to help fund the rebuilding programme, the Mainichi Daily reported.

Reservations exist within the banking sector however, and no firm decision has yet been taken.

Currently, account holders lose access to their money if five years passes without a transaction being made, though in some banks this period lasts for ten years.

However, most financial institutions hold the position that they will release the money if a request is made, which adds complications to the proposals.

With cabinet ministers now due to discuss the issue, the chief cabinet secretary said: "There are some difficulties to realising the measure, but I believe it will be on the agenda," the news provider quoted.

As a result of the natural disasters last year, economic output in Japan contracted by 0.9 per cent.

Written by Susan Ballion