The Democratic Party of Japan yielded to the opposition camp Tuesday and agreed to redeem the bonds for financing the reconstruction of the Tohoku region in 25 years.
The agreement came after the DPJ compromised on the redemption period, extending the government's original plan of 10 years to 15 years last month and then to 25 years on Monday, as the Liberal Democratic Party claimed the period should be 60 years and New Komeito said 15 to 20 years was better.
DPJ Secretary General Azuma Koshiishi, after meeting his counterparts in the LDP and New Komeito, confirmed that they also agreed to pass by the end of this month the third extra budget, worth ¥12.1 trillion, to finance efforts to help the Tohoku region recover from the March 11 quake and tsunami.