Japan announces fiscal reconstruction plan at G20

ST. ANDREWS, Scotland (Kyodo) Japan told a meeting of the Group of 20 major countries about its plan to set up at an early date a target to rebuild its finances, Senior Vice Finance Minister Yoshihiko Noda said Saturday.

During a press conference at the end of the two-day meeting of the G20 finance ministers and central bankers, Noda also said the Japanese economy is "picking up but lacks self-sustainability, and employment conditions are severe," and that he will aim to realize economic growth led by domestic demand.

Noda, who attended the meeting in the Scottish seaside city of St. Andrews on behalf of Finance Minister Hirohisa Fujii, said it is still premature for Japan to end its emergency fiscal and monetary policies.

Bank of Japan Governor Masaaki Shirakawa echoed the view at the press conference, saying that the Japanese central bank will continue providing "an extremely accommodative financial environment."

During the G20 meeting, Noda said Japan proposed to set up a fund to assist developing countries combat climate change.

Although the participants "agreed on the need" to establish such a fund, they failed to agree on specific measures for the scheme, he added.