--Japan's MOF Kuroda: Adjustment period likely to accompany reforms
--Japan's Kuroda: Econ fundamentals not necessarily weaker with reform
--Japan's Kuroda: Desirable for FX to move in line with fundamentals

By Stephen Cannon
Tokyo, July 13 (BridgeNews) - Vice Finance Minister for International Affairs Haruhiko Kuroda hinted Friday that he doesn't expect the structural reforms being pushed by Prime Minister Junichiro Koizumi to lead to a weak yen. However, Kuroda did say Japan's economy will likely enter an adjustment period of lower growth during structural reforms.
After saying structural reforms wouldn't necessarily make Japan's economic fundamentals weaker, Kuroda said, "Structural reform will lead to higher growth in the medium-term, but in the beginning there will probably be an adjustment period."
The government is forecasting 1.7% growth for Japan's gross domestic product, but few analysts say this figure is achievable. Kuroda added, "It's desirable for foreign exchange levels to move with economic fundamentals," leading to the conclusion that he doesn't think that structural reforms should weaken the yen.
Kuroda also said Argentina is pursuing structural reforms in line with a program put forward by the International Monetary Fund and the Group of Seven nations supports them in this effort. The U.S. dollar/yen is currently at 124.10 at 0947 JT.