A Liberal Democratic Party task force expressed its support Thursday for the principles of a plan to set up a 10 trillion yen fund through bond issues to help protect depositors.
The group also decided to consider working the idea into the party's financial stability package, to be formally unveiled next Tuesday. But details concerning the actual amount of public money to be utilized and how it would be raised were left to the panel's leader, former Prime Minister Kiichi Miyazawa, who is responsible for finalizing the details by Monday.
Miyazawa is expected to discuss with Finance Ministry officials ways in which public funds could be collected without inflicting more damage on the nation's coffers. Former Chief Cabinet Secretary Seiroku Kajiyama, who put forward the 10 trillion yen fund proposal, explained the idea to the panel, pointing out that it will involve the issue of a new type of government bond with government-held shares as collateral. "It is necessary for lawmakers to show our clear position that stabilizing the financial system is most important for our economy by stating a concrete figure such as 10 trillion yen," he was quoted as saying.