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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: bluejeans who wrote (33331)	10/4/1998 1:49:00 AM
From: flickerful	Read Replies (1) \| Respond to of 132070

Japan Plans No Further Economy-Boosting Measures, Miyazawa Says Sun, 4 Oct 1998, 1:51am EDT Washington, Oct. 3 (Bloomberg) -- Japan's economic-stimulus plans are sufficient, and the government has no intention of coming up with further measures to bring the country out of its worst recession in 50 years, Finance Minister Kiichi Miyazawa said. ''I am not considering any additional measures'' to boost the economy, Miyazawa said at a press conference after the meeting today of finance ministers and central bankers of the Group of Seven nations. ''Japan was not asked to take additional measures'' by other G-7 members, he said. Still, Japan's economic plight was highlighted in a joint statement released by the G-7, which stressed the importance the members ''attach to the swift and effective action to strengthen Japan's financial system.'' This, they said, includes measures to support ''viable banks'' with public money. U.S. Treasury Secretary Robert Rubin said at a press conference after the G-7 meeting he doesn't see much progress in Japan's economy. ''You're asking if I characterize negative growth this year plus 0.5 percent growth next year as strong, sustainable growth? No,'' he said. Rubin, who met with Miyazawa earlier today, underscored the importance of Japan reviving its economy by stressing ''the urgency of fast and effective action'' to stimulate growth, according to a statement released by the Treasury Department. Miyazawa said a bank-bailout bill passed yesterday by Japan's lower house of parliament will help when it becomes law. Further, his ruling Liberal Democratic Party is drafting legislation to inject public funds into ailing banks to keep them afloat, although that's been delayed because of opposition in the parliament. The passage of these two bills will complete bank reform, Miyazawa said. Capital Injection G-7 countries called for the Japanese government to inject capital into fundamentally healthy banks to revive the banking system and re-ignite the economy. Japan will soon introduce a new fund, called a ''Financial Reconstruction Account,'' to replace a 13 trillion yen (US$9.6 billion) fund established earlier this year to pump money into weak but viable banks. Bank of Japan Governor Masaru Hayami, who also attended the press conference, said the central bank will continue to provide ample funds for the financial markets to avoid a credit crunch and encourage corporate activity. ''Japanese stocks have been sliding,'' and that reduces the capital of many Japanese banks, he said. Japan's benchmark Nikkei 225 stock index, which slipped to 12,973.24, breaking the 13,000 mark for the first time since January 1986, closed up 0.20 percent, to 13,223.7 on Friday.