Japan can pay for rebuild: central bank governor
New York (AFP) April 13, 2011
Japan's economy suffered a big blow in the triple earthquake, tsunami and nuclear disaster, but the country should have no problem financing reconstruction, the central bank chief said Thursday.
Bank of Japan Governor Masaaki Shirakawa conceded problems in the economic supply chain, power generation, tourism and other important sectors.
But he said the financial system could cope.
"As long as Japan continues to work tirelessly towards rebuilding it is unlikely that financing problems will arise," he said in a speech at the Council on Foreign Relations in New York.
Shirakawa said the three-pronged disaster struck "at a time when Japan's economy was gradually returning" to strength. He said the disruption mean "it is inevitable" that production and supply will suffer.
And given the global nature of economy, closely linked countries such as China and the United States could also be affected. "The impact on supply chain could spread internationally," he said.
However, Shirakawa insisted that Japan has the resources to bounce back.
"Japanese society has shown resilience. The work of rebuilding has started to get underway gradually but steadily," he said.
"The first challenge is ensuring the necessary financing for rebuilding. In this regard, Japan has had an excess of saving over investment for a protracted period. From a macro-economic perspective, this financing will not be difficult," he said.
"Japan's capacity for foreign currency funding is extremely strong, given that the country is the biggest creditor nation in the world."
"Private financial institutions are fully able to meet an increase in financing demand for rebuilding. Meanwhile, Japanese government bonds have been issued quite smoothly," he said.
"Most private economists believe that Japan's GDP growth rate will turn positive again from the third quarter of 2011."
Share This Article With Planet Earth
Bringing Order To A World Of Disasters
A world of storm and tempest
When the Earth Quakes
Tokyo (AFP) April 14, 2011
They pulled on their grass skirts to help save their mining town once before, now Japan's "hula girls" plan to save it again, this time from becoming a nuclear ghost town. A spa resort on the cusp of the troubled Fukushima nuclear plant exclusion zone might be a difficult sell to tourists but a group of sexy Hawaiian style dancers plan to do just that. "People now associate Fukushima wit ... read more
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|