G-7 hails U.S. bailout plan, vows to take necessary actions+

TOKYO, Sept. 22 Kyodo - Group of Seven finance ministers and central bank governors on Monday welcomed a U.S. bailout plan to clean up bad assets at the country's financial entities in a joint statement, while pledging to take actions necessary to stabilize the
global financial system.

''We strongly welcome the extraordinary actions taken by the United States to
enhance the stability of financial markets,'' the G-7 said in the statement
issued after a conference call.
''We are ready to take whatever actions may be necessary, individually and
collectively, to ensure the stability of the international financial system,''
the seven economies said.
U.S. Treasury Secretary Henry Paulson explained the planned $700 billion
remedial plan for troubled U.S. financial entities to his counterparts from
Britain, Canada, France, Germany, Italy and Japan in the teleconference held at
his request, Japanese Finance Minister Bunmei Ibuki told reporters in Tokyo.
Under the plan, Washington will employ taxpayers' money to purchase bad
mortgage-related assets over the next two years.
Ibuki said Paulson did not specifically ask other G-7 economies to establish
similar bailout schemes to rescue their own financial institutions.
The Japanese minister said Tokyo does not need such a scheme because the
exposure of Japanese financial institutions to subprime-related assets has been
limited and they have firm capital bases.
The G-7 financial chiefs lauded the coordinated move by six central banks to
supply dollar funds in short-term money markets to defuse liquidity pressures.
They also welcomed measures taken by several regulators to stabilize markets,
such as a temporary ban on short-selling of financial stocks.
Financial Services Minister Toshimitsu Motegi issued a statement Monday night
to underline the Financial Services Agency's resolve to ''take rigorous actions
against violations, including stricter enforcement of restrictions on
short-selling of shares in listed companies, particularly those in financial
firms.''
Japan already has in place restrictions on short-selling that cover all listed
companies. Securities firms are required to verify and mark whether transitions
in questions are short-selling or not.
The seven economies reaffirmed that they will implement recommendations made by
the Financial Stability Forum, a G-7 advisory body, to enhance the resilience
of the global financial system and examine progress in their efforts in an FSF
report to be issued this fall.
Representatives of the European Central Bank and the International Monetary
Fund also took part in the conference call, according to Ibuki.
The G-7 financial ministers last held a teleconference in early September,
after the U.S. government took control of two beleaguered mortgage finance
giants, Fannie Mae and Freddie Mac.