Additional stimulus budgets of 10 trillion yen are needed for the current fiscal year and the following two years so the government can fill the deflationary gap between supply and demand, trade chief Kaoru Yosano said Monday.
During a meeting with Yosano, representatives of the Japan Foreign Trade Council, which consists of the major trading houses, asked the government to apply a wide range of measures to lift the economy.
Among these are the stemming of banks' credit shrinkage within and outside of the country, bold and effective stimulus measures, support for Japanese-affiliated firms in Asia and the improvement of conditions to stimulate businesses.
Yosano replied that the government is ready to tackle the problem of Japanese-affiliated firms in Asia by mobilizing all the available systems, such as the Export-Import Bank of Japan, trade insurance and yen credit, according to officials at the Ministry of International Trade and Industry.
As for yen credit, Yosano said he will speak with the government offices concerned to seek ways to boost the amount of tied loans so that such governmental credit to developing countries will more fully benefit Japanese-affiliated companies overseas, they said.