ID :
22144
Wed, 10/01/2008 - 17:25
Auther :
Shortlink :
https://oananews.org//node/22144
The shortlink copeid
Japan concerned over rejection of U.S. bailout plan+
TOKYO, Sept. 30 Kyodo - The Japanese government signaled its deep concern Tuesday that the global financial turmoil could be prolonged and more serious as the U.S. administration saw its $700 billion bailout plan blocked by the U.S. House of Representatives.
Prime Minister Taro Aso vowed to prevent a negative impact on the Japanese
economy and financial system from the plunges in U.S. and Japanese shares,
Chief Cabinet Secretary Takeo Kawamura said.
''We must carefully respond to the situation to prevent such developments from
seriously spilling over (to the Japanese economy),'' Aso told reporters at his
office.
The prime minister added that major central banks around the world, including
the Bank of Japan, are joining forces to supply dollar funds to money markets
to avoid a meltdown of the global financial system.
Later in the day, Aso suggested that the government will consider formulating
an additional economic stimulus package to deal with the expanding global
financial turmoil, following an emergency economic package worth about 11.7
trillion yen unveiled at the end of August.
''We need to take the next step after (passage of) the supplementary budget,''
Aso told Fujio Mitarai, chairman of the Japan Business Federation, the nation's
most powerful business lobby known as Nippon Keidanren, when they met at the
prime minister's official residence.
''It is important to expand domestic demand,'' he added.
Tokyo stocks plunged nearly 5 percent at one point Tuesday following a historic
Wall Street sell-off overnight.
Economic and Fiscal Policy Minister Kaoru Yosano said, ''I know that U.S.
politics is in a very delicate situation now before the presidential election.
We are deeply concerned.''
The U.S. House of Representatives on Monday voted down emergency legislation
submitted by the administration of President George W. Bush to create a
government fund with taxpayers' money to buy troubled assets from banks in an
effort to ease stress in the U.S. financial system.
''This issue has a great impact not only on the U.S. economy but also on the
global economy,'' Yosano told reporters. ''We hope from the heart that the U.S.
Congress will have further discussions and reach a better result.''
At a separate press conference, Finance Minister Shoichi Nakagawa expressed
surprise over the development in the United States, saying Japan will monitor
further developments until the U.S. Senate votes on the bill.
''Japan will work closely with the United States and Europe and watch the
situation calmly with the hope that the U.S. Congress will achieve some kind of
progress,'' he said.
Nakagawa also called for a levelheaded reaction from Japanese markets. ''The
impact on Japan (of the subprime loans) is considerably smaller, compared with
the United States and Europe,'' Nakagawa said. ''I hope Japanese markets will
carry out a thorough risk analysis and react calmly.''
Prime Minister Taro Aso vowed to prevent a negative impact on the Japanese
economy and financial system from the plunges in U.S. and Japanese shares,
Chief Cabinet Secretary Takeo Kawamura said.
''We must carefully respond to the situation to prevent such developments from
seriously spilling over (to the Japanese economy),'' Aso told reporters at his
office.
The prime minister added that major central banks around the world, including
the Bank of Japan, are joining forces to supply dollar funds to money markets
to avoid a meltdown of the global financial system.
Later in the day, Aso suggested that the government will consider formulating
an additional economic stimulus package to deal with the expanding global
financial turmoil, following an emergency economic package worth about 11.7
trillion yen unveiled at the end of August.
''We need to take the next step after (passage of) the supplementary budget,''
Aso told Fujio Mitarai, chairman of the Japan Business Federation, the nation's
most powerful business lobby known as Nippon Keidanren, when they met at the
prime minister's official residence.
''It is important to expand domestic demand,'' he added.
Tokyo stocks plunged nearly 5 percent at one point Tuesday following a historic
Wall Street sell-off overnight.
Economic and Fiscal Policy Minister Kaoru Yosano said, ''I know that U.S.
politics is in a very delicate situation now before the presidential election.
We are deeply concerned.''
The U.S. House of Representatives on Monday voted down emergency legislation
submitted by the administration of President George W. Bush to create a
government fund with taxpayers' money to buy troubled assets from banks in an
effort to ease stress in the U.S. financial system.
''This issue has a great impact not only on the U.S. economy but also on the
global economy,'' Yosano told reporters. ''We hope from the heart that the U.S.
Congress will have further discussions and reach a better result.''
At a separate press conference, Finance Minister Shoichi Nakagawa expressed
surprise over the development in the United States, saying Japan will monitor
further developments until the U.S. Senate votes on the bill.
''Japan will work closely with the United States and Europe and watch the
situation calmly with the hope that the U.S. Congress will achieve some kind of
progress,'' he said.
Nakagawa also called for a levelheaded reaction from Japanese markets. ''The
impact on Japan (of the subprime loans) is considerably smaller, compared with
the United States and Europe,'' Nakagawa said. ''I hope Japanese markets will
carry out a thorough risk analysis and react calmly.''
