Liberal Democratic Party policymakers in charge of revitalization of the stock market were still split Thursday over the efficacy of a controversial private fund aimed at easing selling pressure that stems from the unwinding of cross-held shares.
During a joint meeting of related LDP panels the same day, many party members voiced concern over the proposal, which could see public funds being used to shore up share prices if the proposed fund is state-guaranteed.
But the party’s financial policy chief brushed aside the split over the issue.
“The point is what specific plans we should work out for the organization, not whether or not we should create it,” Hideyuki Aizawa said, adding that the idea was already part of an emergency economic package hammered out by the ruling bloc.
The government and the ruling coalition have been working out specifics of an emergency economic package unveiled by the coalition since earlier this month. The package includes creating the proposed fund and steps to promote the disposal of banks’ bad loans and revitalize land deals.
The fund’s creation has already faced various stumbling blocks. The Financial Services Agency reported to Thursday’s meeting that banks and brokerages remain skeptical about the concept because the extent of state involvement in the plan is unclear.
The ruling parties and the government nevertheless plan to present the specifics of the package around April 6, by which time the Diet should have completed deliberations on the fiscal 2001 budget and related bills.
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