Prime Minister Junichiro Koizumi admitted Thursday that his government may not be able to submit legislation designed to create a government body to buy banks' shareholdings before the end of the current Diet session on June 29.

"It is true that it will be difficult to propose legislation to establish the Bank Equity Purchasing Corp. during the current Diet session," Koizumi told the Upper House plenary session.

His comment confirmed what key members of his government, including Hakuo Yanagisawa, minister in charge of financial affairs, had announced previously.