ID :
209786
Tue, 09/27/2011 - 17:23
Auther :
Shortlink :
https://oananews.org//node/209786
The shortlink copeid
Japan suggests additional buying of European rescue bonds
TOKYO, Sept. 27 Kyodo - The Japanese government may purchase additional rescue bonds to be issued by the eurozone in order to help address market concerns over fiscal problems in Greece, Finance Minister Jun Azumi indicated Tuesday, urging the single currency area to create a decent scheme to that end.
''If there is any scheme that could help ease tensions worldwide, including financial markets, over the rescue of Greece, I will not deny the possibility that Japan will share some burdens,'' Azumi told reporters.
He was answering a question about whether Japan is ready to purchase more bonds from the European Financial Stability Facility, the eurozone's bailout fund. Tokyo has already purchased some 20 percent of EFSF bonds when it issued debt in January for Ireland and in June for Portugal.
Azumi said the current instability in global financial markets largely reflects lingering concerns among investors over the sovereign debt crisis in Europe, and called for a quick implementation by eurozone countries of their July agreement on a 109 billion euro second rescue plan for Greece that must be passed by national parliaments in each member country.
The EFSF is expected to play a central role in future eurozone bailouts as the July 21 agreement would allow the fund to buy sovereign bonds in the secondary market, recapitalize banks exposed to the crisis and take the precautionary step of extending loans to eurozone members facing liquidity problems.
Azumi said he believes that market participants remain skeptical about whether rescue measures will be appropriately taken for Greece, while admitting they have almost shrugged off the weekend emergency statement by financial chiefs from the Group of 20 leading economies that they will ''take all necessary actions'' to restore financial stability.
The statement, however, also fueled speculation that the advanced and major developing economies could coordinate some policy actions to defuse tension over global financial markets. The G-20 finance ministers and central bank governors will again meet next month in Paris, ahead of a leaders' summit in November in Cannes, France.
Azumi reiterated that Japan will not tolerate excessive volatility in foreign exchange rates, warning that Tokyo would take ''decisive action'' when it proves necessary to curb the strength of the yen, which could hurt the economy's export-led recovery from the March earthquake and tsunami.
Also Tuesday, the government said it will bring forward some countermeasures against the negative impact on the Japanese economy of the sharp rise of the yen against the U.S. dollar and other major currencies, not waiting for passage through the Diet of an envisaged third extra budget for fiscal 2011 that would finance the set of measures, outlined last week.
The frontloaded measures include eased conditions for companies to apply for state aid to maintain employment even when they suffer poor sales. The move comes as the government has been increasingly alarmed by the gloomier outlook for the U.S. and European economies as well as by the rising yen.
While the government is preparing additional spending on reconstruction work following the March 11 disaster, Azumi said the planned supplementary budget could top 11 trillion yen, compared with about 4 trillion yen in the first and 2 trillion yen in the second extra budget.
''If there is any scheme that could help ease tensions worldwide, including financial markets, over the rescue of Greece, I will not deny the possibility that Japan will share some burdens,'' Azumi told reporters.
He was answering a question about whether Japan is ready to purchase more bonds from the European Financial Stability Facility, the eurozone's bailout fund. Tokyo has already purchased some 20 percent of EFSF bonds when it issued debt in January for Ireland and in June for Portugal.
Azumi said the current instability in global financial markets largely reflects lingering concerns among investors over the sovereign debt crisis in Europe, and called for a quick implementation by eurozone countries of their July agreement on a 109 billion euro second rescue plan for Greece that must be passed by national parliaments in each member country.
The EFSF is expected to play a central role in future eurozone bailouts as the July 21 agreement would allow the fund to buy sovereign bonds in the secondary market, recapitalize banks exposed to the crisis and take the precautionary step of extending loans to eurozone members facing liquidity problems.
Azumi said he believes that market participants remain skeptical about whether rescue measures will be appropriately taken for Greece, while admitting they have almost shrugged off the weekend emergency statement by financial chiefs from the Group of 20 leading economies that they will ''take all necessary actions'' to restore financial stability.
The statement, however, also fueled speculation that the advanced and major developing economies could coordinate some policy actions to defuse tension over global financial markets. The G-20 finance ministers and central bank governors will again meet next month in Paris, ahead of a leaders' summit in November in Cannes, France.
Azumi reiterated that Japan will not tolerate excessive volatility in foreign exchange rates, warning that Tokyo would take ''decisive action'' when it proves necessary to curb the strength of the yen, which could hurt the economy's export-led recovery from the March earthquake and tsunami.
Also Tuesday, the government said it will bring forward some countermeasures against the negative impact on the Japanese economy of the sharp rise of the yen against the U.S. dollar and other major currencies, not waiting for passage through the Diet of an envisaged third extra budget for fiscal 2011 that would finance the set of measures, outlined last week.
The frontloaded measures include eased conditions for companies to apply for state aid to maintain employment even when they suffer poor sales. The move comes as the government has been increasingly alarmed by the gloomier outlook for the U.S. and European economies as well as by the rising yen.
While the government is preparing additional spending on reconstruction work following the March 11 disaster, Azumi said the planned supplementary budget could top 11 trillion yen, compared with about 4 trillion yen in the first and 2 trillion yen in the second extra budget.
