Japan's six month economic outlook not bright

January 16, 2002

Japanese State Minister for Economic and Fiscal Policy Heizo Takenaka spelt out yet again yesterday that recovery is no where in sight for a Japanese economy seemingly in nowhere land...

Reforms have been slow coming, and despite goodwill from the electorate, the culture of big business-government ties built up over several decades is proving just as hard to tear down.

More from the minister's warnings from the Singapore Business Times :
Japanese minister warns of looming economic risk - January 16, 2002

Excerpt only:
TOKYO - Japan's ailing economy may sink deeper over the next six months as banks dispose of massive bad loans in a bid to return to financial health, the government's key economic minister warned today.

"We need to be cautious over the possible downside in the next three to six months generated by the disposal of bad loans and the impact on the corporate sector of cleaning up excessive debt," State Minister for Economic and Fiscal Policy Heizo Takenaka told a business conference.

Prime Minister Junichiro Koizumi has ordered banks to reduce non-performing loans to levels where they are covered by operating profit within three years as part of a drastic reform drive to lift the nation out of recession.

Chao Phraya River Rat in Asian Finance on January 16, 2002 05:40 PM

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