Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (9938)	4/14/1998 7:40:00 PM
From: goldsnow	Read Replies (3) \| Respond to of 116915

Japan refuses to attend its own funeral... Japan rejects IMF's grim outlook for economy 12:48 a.m. Apr 14, 1998 Eastern By George Nishiyama TOKYO, April 14 (Reuters) - Japan on Tuesday rejected the International Monetary Fund's (IMF) grim outlook for its economy, saying that the IMF's concerns were overblown. ''I find it difficult to understand the IMF's concerns over the stability of the Japanese financial system,'' said Finance Minister Hikaru Matsunaga, referring to the IMF's World Economic Outlook which said weak banks were a factor behind expected zero growth for the Japanese economy this year. Matsunaga said stability had returned to Japan's financial system following government measures to make use of up to 30 trillion yen ($230 billion) to stabilise the system, and efforts by commercial banks to dispose of their problem loans. Matsunaga also said the government would take measures to achieve its forecast of 1.9 percent growth for the economy in the current fiscal year which started in April. ''I hear that the IMF is forecasting zero growth, but we would like to take measures so that we get closer to the government forecast,'' Matsunaga said. The IMF forecast zero growth in Japan's economy this calendar year, but said even that could be optimistic. Signs of discord between the IMF and the world's second-largest economy underscore differences which came to light at the London Group of Seven (G7) nations' meeting in February and which were rekindled ahead of another G7 meeting in Washington this week. ''If people from the IMF are there as observers, then I must explain to them clearly that Japan's financial system has stabilised considerably,'' Matsunaga said, referring to Wednesday's G7 meeting in Washington. At the London G7, the IMF stressed the need for Japan to take fiscal steps, but Tokyo thought otherwise. The IMF continued to put on the pressure, with its First Deputy Managing Director Stanley Fischer saying last week that much of Japan's needed fiscal expansion should be in the form of tax cuts. Although Prime Minister Ryutaro Hashimoto heeded such advice and announced four trillion yen of fresh income tax cuts last Friday, Matsunaga said he will explain Hashimoto's ''bold decision'' to the other G7 partners, indicating he would like to keep in check calls for further tax cuts. Matsunaga said he hoped to hold a bilateral meeting with U.S. Treasury Secretary Robert Rubin and explain Japan's tax system, in particular that the starting level for paying tax was very high in Japan, even compared with the United States. ''I am a bit worried whether Rubin and (Deputy Treasury Secretary Lawrence) Summers have a correct understanding of the Japanese tax system,'' he said. The IMF's bleak outlook comes on the heels of a grim forecast by the Organisation for Economic Co-operation and Development (OECD) earlier this month which said Japan was on the brink of recession, and forecast a 0.3 percent fall in growth for calendar 1998. ($1-130 yen) ((Tokyo newsroom +81-3 3432-8022 tokyo.newsroom+reuters.com)) ^REUTERS@ Copyright 1998 Reuters Limited.