BANKING

Lenders Agree to Forgive Part of Japanese Credit Union’s Debt: The cleanup of a the banking mess in Japan took a step forward when key lenders to Cosmo Credit Union agreed to forgive 60% of their loans to the financial institution. The ministry has requested that some give up 100%, and the ministry official said a final plan will be hammered out next week. The six lenders, including big Japanese banks such as Sanwa Bank, Sakura Bank and Fuji bank, have outstanding loans totaling $567 million to Cosmo, one of Japan’s largest credit unions. The government closed Cosmo on Aug. 1 after word spread about its loan troubles. The Finance Ministry estimates Cosmo’s bad debt total at $2.58 billion.