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.

© 1999-2024 Forex EuroClub
All rights reserved