ÿFull story Japan PM vows to stave off global financial crisis
12:34 p.m. Jan 01, 1998 Eastern
TOKYO (Reuters) - Japanese Prime Minister Ryutaro Hashimoto made a New
Year pledge on Thursday to put the faltering economy back on track,
stabilize the financial system and prevent Japan from triggering a
global economic crisis.
In a New Year's address to the nation, Hashimoto urged the nation's 123
million people not to worry about the future of Japan's economy.
''I am firmly determined to stabilize the financial system, put the
economy back on a recovery track and regain confidence in the future of
the economy,'' Hashimoto said.
He said Japan's financial system has lost confidence at home and abroad
following a string of failures last year among the nation's financial
institutions, including Yamaichi Securities Co. Ltd., one of the
country's biggest brokerages.
He said Japan's economy would not falter because the nation was armed
with 1,200 trillion yen ($9.23 trillion) in private financial assets,
$800 billion in net foreign assets and the world's largest foreign
reserves, totaling over $200 billion.
''Therefore, you need not worry at all. ... I don't agree to pessimistic
arguments that there is no future for Japan,'' he said.
''Japan will never cause (global) economic and financial crises,'' he
said.
He said he would press ahead with a package of economic and financial
measures including a one-time income tax cut of 2 trillion yen ($15.3
billion) and the use of public funds worth 30 trillion yen ($230
billion) to stabilize the financial system.
''I feel certain that the package of measures will bring strong economic
recovery to our country,'' Hashimoto said.
A rise in the nation's sales tax in April, recent failures of Japanese
financial institutions and the economic woes of other Asian nations have
been blamed for the Japanese slowdown.
Economists say the effects will plague Japan's economy for the next few
months.
They also believe that a possible increase in unemployment after the
large number of corporate bankruptcies could cast a dark shadow over the
economy.
''We must decisively protect Japan's financial system now. ... I will do
my best to protect the life of general public,'' Hashimoto said.
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