Press Conference by the Press Secretary December 9, 1997
- Financial reform in Japan
Q: Is the Prime Minister concerned with the failures of financial firms, or is this simply viewed as a necessary part of the reform process?
Spokesman Hashimoto: Since Prime Minister Ryutaro Hashimoto took initiatives in implementing the so-called six reforms, he is very mindful of the reform process. Having said that, the Government faces short-term problems, especially in relation to several private financial institutions. The Government has already announced several measures and is determined to do its best to maintain the financial mechanism of Japan, irrespective of difficulties in certain private financial institutions. At the same time, Prime Minister Hashimoto told the journalists in Vancouver that, in the Diet and in many quarters of Japan, there have been discussions on whether the Government should use public money to further protect the interests of depositors and investors. I understand the parliamentarians are now in the middle of discussions on this difficult question. As far as the amendment to the Deposit Insurance Institute Law is concerned, the Vice Minister of the Finance Ministry made it clear that the Finance Ministry would like to have this amendment passed at this extraordinary session of the Diet. Although the fundamentals of the Japanese economy are not so bad, the Japanese economy still has problems. This morning, the monthly report on the Japanese economy was reported to the Cabinet, in which the Government says that the economy of Japan is at a standstill. The Prime Minister continues to take necessary measures, in order to revitalize the economy and gain market confidence in the future of the Japanese economy.
Q: Is it viewed that further job losses are inevitable in the process of reviving the economy and reforming the economy?
Spokesman Hashimoto: We are watching the situation. In the report today, the Government noted that the increase in new employment has slowed down, leading to a high unemployment rate. Therefore, unless consumers' confidence is brought back and Japan's economy is revitalized, we cannot be too optimistic about the employment situation. With that said, I would like to draw your attention to the fact that plant and equipment investment is on the road to recovery, lead by the manufacturing industry. Although we do not intend to switch our economic policy, which means that we intend to enjoy sustainable economic development with the expansion of domestic demand, we know now that the net export is on the increase, and some export-related industries are gaining profit. At the same time, housing construction seems to have bottomed out, implying that it may be on the rise. However, it is still weak. Therefore, we hope that this positive data will bear a more tangible result in the future, so that we can have more satisfactory data on the economic performance in many more fields. But, the trouble is that there is still a lack of confidence on the part of consumers and businesspeople, so the Government continues to do its best to regain their confidence in the future of the Japanese economy.
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