Debt
In 1987, when the privatization of Japanese National Railways took place, JNR debt totaled over ¥37 trillion. Upon passage of the 1987 Railway Reform Law, the debt of JNR was split, with 60% of the responsibility falling directly on the JNR Settlement Corporation, and 40% falling on three of the JR Group railway companies, JR East, JR Central, and JR West. While the smaller portion was expected to be repaid, the three JR Group railway companies were not held liable for failed earnings, and only made significant profit through sale of stock. JNR dignitaries staggered interest payments on the large existing debt to keep the JNRSC from paying back the debts that it was expected to. During its tenure, the debt increased, leaving taxpayers to pay off nearly ¥24 trillion as of 2009.
Read more about this topic: JNR Settlement Corporation
Famous quotes containing the word debt:
“Pain and fear and hunger are effects of causes which can be foreseen and known: but sorrow is a debt which someone else makes for us.”
—Freya Stark (1893–1993)
“However patriarchal the world, at home the child knows that his mother is the source of all power. The hand that rocks the cradle rules his world. . . . The son never forgets that he owes his life to his mother, not just the creation of it but the maintenance of it, and that he owes her a debt he cannot conceivably repay, but which she may call in at any time.”
—Frank Pittman (20th century)
“Let every man, every corporation, and especially let every village, town, and city, every county and State, get out of debt and keep out of debt. It is the debtor that is ruined by hard times.”
—Rutherford Birchard Hayes (1822–1893)