TOKYO (AFX-ASIA) - Minister of Financial Affairs Hakuo Yanagisawa said the central banks of the US and the UK would like to see Japan take into account the condition of its economy in its efforts to dispose banks' bad debts. "When I visited Britain and the US last week, their central bankers expressed concern that we should pay attention to the economic recovery as much as to promoting bad-loan disposals," he said in an address to business leaders. Yanagisawa is opposed to an idea proposed by Hirotaro Higuchi, special counselor to the prime minister, that the government create an industry rejuvenisation panel to mediate between banks and bad debtors. "I think that the disposal (process) is too slow, but I believe the government should not commit itself to killing indebted companies. Banks and companies should discuss how to resolve the bad debts, paying respect to the market mechanism," he said. "Even risk-managed loans may turn bad as companies go bankrupt because of shortage of operating funds," Yanagisawa said.