26 March 2002, 09:55  Shiokawa - Japan to work out more anti-deflation measures in April

TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the government will work out additional anti-deflation measures in April, though the moves will not be combined into a single package. "The government will present additional anti-deflation measures in April but it will not be presented as a single package. We will launch individual measures," Shiokawa told a regular press briefing. "In my view, the government should place more focus on promoting info-, bio- and nano-technologies as the core part of its industrial policy," he said. "The government can provide help for those industries in liquidity procurement and handling of patents, as well as some tax programmes. We should focus more on these areas in its public works projects." Shiokawa said the government cannot yet decide whether to inject public funds into major banks, despite the concerns of Bank of Japan governor Masaru Hayami over banks' capital levels and his call for an early response. "The government should wait for the completion of the ongoing inspections into banks by the Financial Services Agency before deciding on a possible capital injection into the banks," he said. "Banks should sell collateral to pay off bad loans, while the government should consider ways to help the Resolution and Collection Corp to act aggressively in promoting disposals of bad loans," he added. "I think the RCC cannot act flexibly because of fears over potential losses from its purchases of banks' bad loans." Shiokawa said he wants to boost the stockmarket by making sure equity investors are able to make best use of existing tax incentives. "I instructed ministry officials to smooth individual investors' use of existing tax breaks to help boost the stockmarket because enforcement is acting against the full use of the incentives," he said.

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