IMF: Japan Has Financial Means to Recover from Disaster

A photo provided by the US Navy on 17 March 2011 shows an aerial view of earthquake and tsunami-related damage in Wakuya, Japan, which is around 20 kilometres away from the coast, on 15 March 2011. Photo by EPA/BGNES

The International Monetary Fund said Thursday that Japan has the financial means to get through the devastating earthquake and tsunam and move on to restore the economy quickly.

"We do believe that what the Japanese government has been doing on the monetary side to ensure stability of their financial system and doing what is necessary to meet the needs of the people of this crisis is the appropriate policy," IMF spokeswoman Caroline Atkinson said in a briefing on Thursday.

In the short term, Japan needs to focus on search and rescue, humanitarian and infrastructure demands, the IMF spokesman said.

"The appropriate response to the fiscal issues in Japan are also about having a medium-term credible plan," she added.

"It's a strong and wealthy society, and the government has the full financial resources to address those needs," Atkinson said.

Once it gets through the crisis, Japan should see a bump in its growth, as it starts the rebuilding process.

"The most important thing for fiscal space going forward is to revive the Japanese economy and get growth," Atkinson said.

She said that IMF will be releasing new estimates of the Japanese economy and the impact of the disaster on the world economy on April 11.

Atkinson refused to comment on whether IMF was concerned about the rapid appreciation of the Japanese yen, because it considers it a "short-term" effect at this point.

On Monday, the Bank of Japan injected USD 180 B into its financial system to shore up the economy to weather the lasting effects of the earthquake, tsunami and possible nuclear disaster.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!