26 February 2002, 09:26 Takenaka - Decision on bank fund injections must wait for result of FSA probe
TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy
Heizo Takenaka said the government will decide whether to inject public
funds into banks after the release of special inspections by the
Financial Services Agency.
"We will decide whether to inject capital into banks after
considering the result of the special inspections," he said.
The inspections into the financial condition of banks and their
borrowers will be completed around end-March.
Participants at tomorrow's Economic and Fiscal Policy meeting will
discuss a wide-range of topics related to anti-deflation measures,
Takenaka said.
"We will discuss deflation measures at the meeting and the
differing opinions of political parties. We would like to reflect
opinions from other parties into the final draft after deep
discussion," he said.
Takenaka said the government must be flexible on policy to tackle
deflation in the short-term, given the issue of stockmarket prices,
adding that he hopes the Bank of Japan will take an appropriate stance.
The central bank will hold its policy board meeting on Thursday,
the day after the economic and fiscal policy meeting to discuss
anti-deflation measures.
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