Photo/Illutration Yasutoshi Nishimura, the state minister heading the central government effort against the novel coronavirus pandemic, speaks at a July 8 session of the Lower House Rules and Administration Committee. (Koichi Ueda)

Opposition lawmakers were quick to pounce on a comment by a state minister indicating financial institutions could apply pressure on bars and restaurants that refuse to heed a government request to temporarily close by withholding loans to desperate businesses.

The government's request comes under the terms of a new state of emergency for the novel coronavirus pandemic while the Tokyo Olympics are in progress.

Yasutoshi Nishimura, the state minister in charge of economic revitalization who also heads the central government's efforts to contain the pandemic, stirred up a hornet’s nest July 8 when he referred to bars and restaurants that ignore requests to close by saying, “While sharing such information with financial institutions, we will work for compliance.”

Nishimura was addressing a news conference after the government decided to declare a fourth state of emergency for Tokyo from July 12 until Aug. 22.

Establishments in the capital that serve alcohol and provide karaoke services will be asked to temporarily close during that period.

Nishimura said discussions were being held with various government agencies and the requests would be submitted in writing.

When asked if he wanted financial institutions to apply pressure by, for example, refusing to extend loans, Nishimura said: “I believe financial institutions have regular contact with (bars and restaurants). We want them to lobby those businesses so they comply with the requests.”

Opposition lawmakers said there was no legal precedent for making such a request to financial institutions and described the move as a “threat” to force establishments to comply with government policy.

Jun Azumi, the chairman of the Diet Affairs Committee of the opposition Constitutional Democratic Party of Japan, told reporters July 9, “Because the government has failed to adequately deal with the pandemic, it is trying to cover for those mistakes through alcohol suppliers and financial institutions.”

Nishimura had earlier said the government was planning to ask suppliers to sever transactions with bars and restaurants that ignore the government request.

Azumi met July 9 with Hiroshi Moriyama, his counterpart in the ruling Liberal Democratic Party, to take issue with Nishimura’s comments.

When asked July 9 about Nishimura’s latest utterance, Prime Minister Yoshihide Suga replied, “I do not know what he said exactly.”

Nishimura might have felt under pressure to overplay his hand because the extended period of the state of emergency and pre-emergency measures has led to reports of bars and restaurants remaining open and serving alcohol well beyond the suggested times laid out in government requests.

Yuichiro Tamaki, the head of the opposition Democratic Party for the People, tweeted that rather than abusing the superior position of financial institutions in relation to bars and restaurants the central government should put together measures that would allow such businesses to close their doors without worrying about their futures.

(Tamiyuki Kihara contributed to this report.)

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