Japan govt to separate three postal service units in privatisation
The government is planning to separate the three units of the public postal service in the event of privatization, local dailies reported, without citing sources.
The Mainichi newspaper and the Sankei newspaper reported the Japanese government is close to deciding a plan to separate the three business units of Japan Post – mail service, postal savings, and postal life units – by the time the public service is privatized.
Under the plan, the three unit will be controlled under a holding company, so as to operate the three businesses in a integrated way, reports said.
The Yomiuri newspaper reported the government is in the process of considering a plan separating the holdings of Japan Post before the privatization and those after the privatization, in terms of government guarantee coverage.
Deposit funds accepted before the privatization will have the full government guarantee, the report said. This will minimize risk to depositors when the newly privatized postal savings and postal life services operate lending business, the report said.
Postal privatization will be discussed at the Council of Fiscal and Economic Policy to be held this week, and the final plan will be formed by September, reports said.
