Prime Minister Junichiro Koizumi said Thursday the government will take every possible measure in cooperation with the Bank of Japan to accelerate the disposal of nonperforming loans and prevent a financial crisis.
However, he said there is no silver bullet to end deflation.
"The disposal of nonperforming loans is a key pillar to overcoming deflation," Koizumi said in a speech at a Tokyo hotel. "And I will accelerate the disposal to normalize the situation in fiscal 2005 as planned."