10 October 2001, 10:21  Shiokawa - MoF will not urge BoJ to change policy at meeting this week

TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the ministry does not plan to urge the Bank of Japan to further ease monetary policy at the bank's policy board meeting this week. "We have no plan to ask the BoJ to change its monetary policy," Shiokawa told a regular briefing. A representative from the ministry attends the bank's policy meetings. "We believe the bank should continue on providing ample liquidity into the banking system but this idea is already accepted by the BoJ so we will not repeat it again at the meeting," he said. Shiokawa said the MoF also plans to reduce further its funding for government-linked companies. "In principle, the ministry will not provide additional funds for government-linked special corporations. "We have already slashed 600 bln yen from the initial budget of 5.2 trln yen to finance special corporations next fiscal year but we plan to cut another 500-600 bln yen from that level," he said. On the other hand, the ministry will approve an increase in spending of 700 bln yen for the healthcare budget for next year, as earlier planned, Shiokawa added.

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