TOKYO (AFX-ASIA) - The head of the Liberal Democratic Party's stockmarket support panel, Hideyuki Aizawa, said the party has approved proposals by the Financial Services agency to set up a body to buy banks' cross-shareholdings.
He added that the stock-buying body will start operations in January.
Aizawa was speaking after attending a tripartate meeting of the LDP's emergency economic measures, financial affairs and fiscal policy committees.
"Although there was some opposition to the FSA proposals, as it was felt they would have a smaller impact on stabilising the stockmarket, the party's three committees approved the plans," Aizawa said. "The LDP and the two coalition parties aim to enact a law for the stock-buying body in the extraordinary parliamentary session to be held in autumn and (for it to) start operations in January," he said. Under the FSA's plans, the government is expected to guarantee possible losses resulting from the stock-buying plan of up to 2.0 trln yen. "There are some opinions that the 2.0 trln yen is too little so we plan to increase the sum if necessary," Aizawa said.