Tokyo wants private money to flow into Asia<\/p>\n
TOKYO (Reuters): The Japanese government aims to encourage
\nJapanese private investors to sink money into Asian securities,
\nas its public aid has helped these nations to weather the crisis
\nand begin heading towards recovery, officials said.<\/p>\n
\"It is of paramount importance to encourage Japanese private
\nmoney, including pension funds, to flow into Asian nations after
\na round of the public aid and now that growth in the region is in
\nsight,\" Japan's top financial diplomat Eisuke Sakakibara said on
\na TV program on Sunday.<\/p>\n
Japan last October introduced the Miyazawa Plan, official
\nfinancial assistance worth US$30 billion over two years for cash-
\nstrapped Asian nations. About two-thirds of that has already been
\ncommitted, Sakakibara said.<\/p>\n
In order to spur Asian economic recovery, Sakakibara said,
\nJapan would add Vietnam to countries receiving help under the
\nMiyazawa Plan and push ahead with a debt-guarantee mechanism
\nincluded in the plan to help Asian nations raise funds from the
\ncapital markets.<\/p>\n
Shuhei Kishimoto, a senior official at the Ministry of
\nFinance's International Bureau, said in a ministry publication
\nthat besides loans and debt guarantees, securities investment in
\nAsian nations was another potential Japanese contribution.<\/p>\n
\"With 1,200 trillion yen ($9.92 trillion) worth of individual
\nassets in Japan having trouble finding attractive places for
\ninvestment, it is worth considering investing Japan's postal
\nsavings and pension fund money in Asian stocks so the funds could
\nbe used for infrastructure purposes in Asia,\" Kishimoto said.<\/p>\n
Such long-term investments would also benefit Japan, which
\nwill be increasingly burdened with rising pension payments
\nbecause of the expanding proportion of ageing people in its
\nsociety, he said.<\/p>\n
Yasuyoshi Masuda, a senior economist at Fuji Research
\nInstitute Corp, said: \"The Miyazawa Plan is priming the pump for
\nprivate investment in Asia.\" He said the government apparently
\nnow wants the private sector -- following in the government's
\nfootsteps -- to resume investment in Asian nations.<\/p>\n
Banking sources said the Finance Ministry was informally
\nasking major Japanese banks if they could increase lending in
\nAsia.<\/p>\n
Masuda said many banks had maintained an interest in Asian
\nnations but were cautious about making aggressive loans and
\ninvestments there because of recent disposals of bad loans that
\nwere made both overseas and at home.<\/p>\n
But there was a chance the Finance Ministry might come up with
\nspecific steps to encourage Japanese securities investment in
\nAsia, he said.<\/p>\n
Masuda said helping Asian nations establish their own
\ngovernment bond markets would also encourage Japanese private
\nmoney to flow there.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tokyo-wants-private-money-to-flow-into-asia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}