Juro Economic Remediation™: The Permanent Global Bad Bank

A perpetual and standardized solution for everyone

Juro™ has been designed to be used by governments and all participants in the global economy (individuals and legal entities alike) as a permanent and Perpetual Global Bad Bank. Juro is a corporate and trust structure which isolates illiquid, non-performing, and high risk assets, which meet the definition of Standard Money Instruments as defined by the Juro Trust Deed. 

Juro acts as a permanent global bad bank through its structure: 

• the Juro Organization
• Juro System Inc.
• the various series of Juro Funds, and 
• the Juro Revenue Sharing Program

collectively “Juro”. 

When significant volumes of such illiquid and high risk assets are held by a bank, financial organization, government, corporation, fund, a group of banks or financial organizations, or any participant in the global economy (hereafter “Creditor”), their financial condition can be negatively impacted. This can result in the disruption of their respective operations, financial failure, and even result in bankruptcy and expanded economic hardships on the broader economy. 

The Juro Organization issues lawful money in units of account called “juro Digital Money” to Creditors at the face value of the Standard Money Instruments of the respective assets which of a “conversion” or “exchange” transaction with the Juro Organization (the Capital Conversion of the Juro System, “CCJS”). Each “conversion” or “exchange” transaction is in actuality a sale of the respective assets to the Juro Organization in accordance to a set of standardized rules. As such, the Juro System acts as an institution primarily holding distressed assets on a perpetual basis in accordance to the standard rules of the Trust Deed.

Why would a Creditor need the Juro Solution?

A Creditor may accumulate a large portfolio of debts or other financial instruments, that fall into the definition of “Standard Money Instruments”, which unexpectedly increase in risk, making it difficult for the Creditor to raise capital, for example through sales of bonds. In these circumstances, the Creditor may wish to segregate its “good” assets from its “bad” assets. Banks generally seek to do so through the creation of a bad bank, or a government mandated bad bank is created for that purpose. Through Juro, a Creditor always has access to this tool, as “conversions” and “exchanges” are possible on an open-ended basis.

The goal of the segregation is to allow investors to assess the Creditor’s financial health with greater certainty and to simultaneously insulate the economy from shocks of massive defaults. 

Traditionally, a bad bank might be established by one bank or financial institution as part of a strategy to deal with a specific difficult financial situation, or by a government or some other official institution as part of an official response to financial problems across a number of institutions in the financial sector at a specific point in time. A bad bank generally has a limited lifetime and a specific purpose. As Juro is a perpetual and permanent structure which allows for “conversions” and “exchanges” on an open-ended basis, the Juro System is very flexible and attractive to Creditors. 

Benefits of the Permanent Juro Bad Bank

In addition to segregating or removing the bad assets from parent Creditor’s balance sheets, the Juro structure permits  its specialized management to deal with the problem of bad debts and asset recovery with a very long-term view based on the Juro standards, in a manner which is in the public interest. The approach allows good banks and good Creditors to focus on their core business operations and/or lending and operations while the Juro bad bank can specialize in maximizing value from the high risk assets in a manner that is consistent to its ethos. 

The Juro structure is independent to the respective Creditors and is charged to hold the bad assets and service them in accordance to the Trust Deed. This completely isolates the original Creditor from the risky assets, as they will have been paid in full for them. Juro acts similar to a bad bank spinoff. 

Have Bad Banks Been used in the past?

Such bad bank institutions have been created to address challenges arising during an economic credit crunch to allow private banks to take problem assets off their books. But this has never been offered in a perpetual and standardized manner which is open to all participants of the global economy the way Juro offers. 

The financial crisis of 2007-2010  resulted in bad banks being set up in several countries. For example, a bad bank was even suggested as part of the Emergency Economic Stabilization Act of 2008 to help address the subprime mortgage crisis in the US. The bad bank, however, never materialized. 

The Juro Organization is preparing a Bill for consideration by the US Congress called the “Permanent Economic Stabilization Act”. This legislation would result in the Juro System becoming the permanent Bad Bank of the US Economic System, and the Global Economic System by extension.