TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy Heizo Takenaka said it is difficult to expect the economy to achieve positive growth this fiscal year. Takenaka's comments were cited by Finance Minister Masajuro Shiokawa at his regular briefing following this morning's Cabinet meeting. "After the Cabinet meeting, I met Takenaka and a few other ministers to discuss the economic situation," Shiokawa said. "Takenaka explained that it is seriously difficult to attain positive growth this fiscal year but we should not forget that goal. Prime Minister Koizumi agreed with Takenaka's remarks," he said. "At the meeting with Takenaka and the prime minister, I stressed that the 30 trln yen bond limit should be maintained and, as for the securities tax breaks, I conveyed my hope that they should be implemented from January," he said. Shiokawa added that he expects no "deals" from his talks tomorrow with US Treasury Secretary Paul O'Neill. Foreign exchange participants noted recent market speculation that the two finance-administration officials may agree at their meeting to a weaker yen in exchange for further progress in Japanese structural reform. "Although I want to present my opinions when I meet Paul O'Neill, there will be no deals from the talks," Shiokawa said. "O'Neill will meet me as one politician. I think he wants to exchange views in a casual way." Shiokawa also rejected reports that he suggested the possibility of setting up a second body to buy-back Japanese shares. "I didn't say that. What I said was that the launch of the (existing planned) banks' stock-buying body should be speeded up," he said.