24 October 2001, 08:31  Gov't may inject funds into troubled banks if needed: Koizumi

TOKYO, Oct. 24 (Kyodo) - Prime Minister Junichiro Koizumi said Wednesday it is possible the government may inject public funds into troubled banks if there is a risk of financial crisis. "It may be possible to inject public funds to avoid any unnecessary disorder in the financial system," Koizumi told a House of Councillors panel. "There's no such need at the moment, but if a problem arises that could trigger a global financial crisis, we will respond in a bold and flexible manner," he said. The government injected massive amounts of public funds into major Japanese banks in March 1999 to bolster their weak capital bases in the wake of a serious domestic financial crisis.

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