TOKYO, Dec 23: Unlisted third-tier Japanese brokerage Maruso Securities Co on Tuesday filed for bankruptcy at the Tokyo district court, a company official said. Maruso is the fifth Japanese brokerage to go under this year.

The ailing brokerage has posted pre-tax losses for three consecutive years and in the fiscal year to March, 1996, Maruso suffered an unconsolidated pre-tax loss of 1.48 billion yen ($11.3 million)."We will make an announcement later about suspending operations," the official said.

The company plans to hold a press conference at 8 P.M. (1100 GMT) to discuss the bankruptcy and suspending operations at its offices, which are all located in Tokyo.

Maruso amassed 46.3 billion yen ($356 million) in liabilities, forcing it to go under, according to the credit research agency Teikoku Databank.

In the fiscal year to March, 1996, the brokerage suffered an unconsolidated pre-tax loss of 1.48 billion yen ($11.3 million).

The 1995 Mexican currency crisis caused the brokerage large losses as it had sold financial instruments based on Mexican government bonds with repurchase agreements, according to a financial newspaper.

After the instruments developed latent losses, the Tokyo-based company was forced to buy them back under those repurchase agreements, it added.

By the end of September this year the brokerage's capital-to-debt ratio had fallen almost to 120 per cent, which is considered dangerously low, the paper said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.