Extricating the enterprises from unhealthy debts and saving the bank credit from damage has become an essential point in the process of economic information.

Influence of Waiving a Credit Obligation and Additional Investment to Bad Debts in Japan;

Since the collapse of its bubble economy, Japan s economy not only fails to extricate itself from the plight, but various signs indicate that its economy is falling into a spiral deflation, which can be seen obviously from such deteriorating problems as the decline of its comprehensive competitiveness, the retardation of its structure adjustment and bad debts.

Japan s Obuchi Cabinet has launched the Financial Regeneration Act and taken a series of stimulative measures as an effort to eliminate the huge bad debts and reinvigorate the financial system and economy of Japan.

Serious bad loans are the same as deflation, and it is one of the important causes that cannot cany out economic recovery in Japan for a long perioyd of time.

As a global problem, non-performing loans have now become a main disease threatening the safety of financial system in many countries, especially those in Asia.

In our country,along with economy system reform of continuously thorough with the socialism market economy of development,bad liabilities have become commercial bank development of severity obstacle.