Noda to propose IMF loans for crisis-hit nations

Japan's Prime Minister Yoshihiko Noda says he will call on the International Monetary Fund to set up new loans for countries threatened by the impact of the sovereign debt crisis in Europe.

In an interview with a British newspaper, The Financial Times, Noda said he will make the proposal at the Group of 20 summit scheduled for early next month in France.

Noda said that the summit will provide an important opportunity for G-20 members to discuss how industrialized nations and emerging economies can work together to prevent the crisis from spreading to other parts of the world.

He said Japan will put much effort into joining the effort to stop the expansion of the crisis.

Noda said the IMF should set up a new system to flexibly lend money to countries which could be affected by the crisis even though they are properly carrying out macro-economic policies.

He said that in order to avoid the possible impact of the crisis, his government is also determined to steadily improve its fiscal situation and achieve a surplus in its primary balance by 2020.

Noda also referred to the Trans-Pacific Partnership. He noted he intends to have Japan join the talks.

He said the region has the potential to become a major booster for the world economy. He suggested that Japan should be involved in the making of trade and investment rules of the TPP with the aim of expanding its national interests.

Noda also mentioned the 2008 acquisition of British medical equipment maker Gyrus by Japanese optical machinery maker Olympus.

The company allegedly paid massive advisory fees to 2 firms that brokered the 2-billion-dollar acquisition.

Noda said he is concerned that the act of a single Japanese firm might be interpreted as if it reflected Japan as a whole.

Monday, October 31, 2011 06:08 +0900 (JST)