USA: Japan's Finance Minister confirms willingness to aid troubled countries with public funds to confront financial crisis

Record ID: 465076

  • Title: USA: Japan's Finance Minister confirms willingness to aid troubled countries with public funds to confront financial crisis
  • Date: 11th October 2008
  • Summary: SLATE INFORMATION
  • Embargoed: 26th October 2008 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: International Relations,Finance
  • Reuters ID: LVA3VSOXD0AGN693JZKYN9KC29CU
  • Story Text: The Japanese Finance Minister Shoichi Nakagawa said on Friday (October 10) his country was ready to aid troubled nations amid the worsening global financial crisis.
    At a news conference ahead of this weekend's Group of Seven conference in Washington, Nakagawa said he would call on the International Monetary Fund to set up a program to extend loans to nations in need of rescue.
    The IMF should tackle actively and flexibly with the crisis, the minister said. And if needed, Japan is ready to contribute more to the IMF.
    The move would provide aid to countries such as Iceland, which is on the verge of bankruptcy, after the government's effort to save the country's three largest banks. Such a move would also boost Japan's export-driven economy which has slowed due to the financial crisis erasing global demand for Japanese goods.
    Nakagawa did not provide any details of his proposal, but suggested that Japan could use some of its almost USD 1 trillion in foreign-exchange reserves, which is second only to China's USD 1.54 trillion.
    The G7 will meet through the weekend with coordinating efforts to tackle the crisis as the priority on its agenda. In a brief single-page statement prior to the start of the meeting, the finance ministers and central bankers from Britain, Canada, France, Germany, Italy, Japan, and the United States pledged to take decisive action and use "all available tools"
    to prevent the failure of systemically important financial institutions.
  • Copyright Holder: REUTERS
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