Reuters: Market News: UPDATE 1-Japan finmin: to hold talks on IMF funding this week

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UPDATE 1-Japan finmin: to hold talks on IMF funding this week Apr 11th 2012, 10:48 Wed Apr 11, 2012 6:48am EDT * Azumi: Europe needs more efforts on its firewall * Japan hopes to clarify stance on IMF funding at G20 * Watching FX moves, will respond by examining trend * Wants BOJ to take appropriate policy steps on deflation By Tetsushi Kajimoto TOKYO, April 11 (Reuters) - Japan will enter talks with other countries this week on how to respond to the International Monetary Fund's call to boost its resources to tackle Europe's debt crisis, Finance Minister Jun Azumi said on Wednesday. Azumi said he hopes Japan will clarify its stance on IMF funding in time for next week's meeting of Group of 20 finance chiefs in Washington, after thoroughly consulting with China and other countries. Finance leaders from the world's 20 biggest economies will discuss an increase of resources for the IMF to help it tackle euro zone debt problems. Last month, Europe expanded its own bailout capacity to 700 billion euros ($915 billion) from 500 billion euros, hoping that G20 finance chiefs would agree to contribute more money to the IMF. "If you ask whether we are satisfied 100 percent, I feel more efforts are needed and I told Europe to do so. Obviously Europe took one step forward but we need to carefully monitor the situation as Spain's problems are emerging," Azumi told reporters in a group interview. "We will hold concrete discussions at high- and working-levels with countries concerned from this week on how to respond. I hope we can clarify our stance after thorough consultations with China and other countries up till the Washington meeting," he said. The IMF is seeking to more than double its war chest by raising $600 billion in new resources to help nations deal with the fallout of the euro zone debt crisis. Rekindled worries about euro zone debt and uncertainty over global growth prospects encouraged investors to cut their risk positions, sending the yen to a five-week high of 80.60 to the U.S. dollar early on Wednesday. Azumi warned against the resurgent yen, which could threaten to hamper Japan's recovery from last year's devastating tsunami, saying that he was watching the currency's moves with great interest and would respond while examining market trends. "I believe the BOJ is watching (currency's moves) with enough interest," he said, when asked about the view that the Bank of Japan's decision the previous day helped the yen rise. "I expects that the BOJ will take timely and appropriate policy steps," he added, while dismissing lawmakers' calls for revising the BOJ law which stipulates the central bank's independence from the government. The central bank, which stood pat on Tuesday, has remained under political pressure to offer further stimulus to a fragile economy as consumer inflation hovers around zero, compared with the 1 percent target it set in February. The BOJ will consider easing monetary policy at its next rate review on April 27 by boosting government bond purchases under its asset-buying programme, sources familiar with the central bank's thinking told Reuters. "I fully feel the BOJ governor's resolve to beat deflation and I don't see the BOJ being reluctant" to take necessary policy steps, Azumi said, keeping up pressure on the bank to do more to beat deflation. "I'd like to work with the BOJ on the fiscal and monetary front through the first half of this year in order to see the way out of deflation." Link this Share this Digg this Email Reprints

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