TOKYO -- Japanese banks exposed to the insolvent Olympia & York Developments Ltd. will probably set aside reserves in the present fiscal half against bad loans to the company, said banking industry sources and analysts.
"Japanese banks are expected to move to do so at the end of September," when their first half ends, "because foreign banks which have exposure to O&Y have already moved to write off bad loans to the company," one analyst said.
Toronto-based Olympia filed with Canadian courts for bankruptcy protection in May.
Tokai, Dai-Ichi, Fuji Named
A creditors list the developer has submitted to an Ontario provincial court showed Japanese banks' outstanding loans to Olympia and its Canadian subsidiaries totaled at least $950 million, according to the Jiji news agency.
Japanese banks with the most in outstanding loans to the Olympia group in Canada were Tokai Bank Ltd., with $251 million; Dai-Ichi Kangyo Bank Ltd., with $181 million; and Fuji Bank Ltd., with $113 million, Jiji said. But how much would be reserved was unclear, banking sources said, as it was not known how much of the debt was secured.