Heizo Takenaka was reappointed to his positions in charge of banking and economic policy by Prime Minister Junichiro Koizumi and said he'll push ahead with efforts to clean up US$384 billion of bad loans at Japanese lenders.
"Bad loans have started to fall significantly," Takenaka told reporters in Tokyo after being reappointed financial services minister and minister for economic and fiscal policy.
PHOTO: REUTERS
"It's necessary to continue pushing ahead with restructuring," he said.
Koizumi reshuffled his Cabinet yesterday in preparation for a general election after keeping his post as head of the ruling Liberal Democratic Party (LDP) last Saturday. He named Sadakazu Tanigaki, a 58-year lawyer, to replace Masajuro Shiokawa as finance minister.
The appointments signal that Koizumi will take on opponents within his ruling party and fulfill two-and-a half-year old pledges to curb spending, clean up bad loans choking Japan's banks and take other steps to restart the world's second-largest economy after three recessions in 12 years, investors said.
"Keeping Takenaka suggests that Koizumi is set on pursuing the structural reforms that he's made central to his policy," said Taiji Yoshida, who helps manage the equivalent of US$23.8 billion in assets at Yasuda Capital Management Co in Tokyo.
"Now the onus is on Koizumi to actually carry out some of the policies that he has been advocating," he said.
"Markets were afraid that reforms in the banking sector would be watered down if a conservative politician took over the banking regulator's job," said Nozomu Kunishige, a bank analyst at BNP Paribas Securities Japan.
Japan's economy expanded at an annual rate of 3.9 percent in the second quarter, the fastest pace since Koizumi took office in April 2001, as Toyota Motor Corp, Sharp Corp and other exporters increased capital investment to meet growing demand for Japanese cars and flat-screen televisions in the US and other markets.
Tanigaki, currently in charge of the Industrial Revitalization Corp of Japan, must pursue two potentially contradictory goals, analysts said: curbing the developed world's largest public debt while also protecting a recovery from the nation's third recession in 12 years.
"Koizumi has already mapped out the country's fiscal and economic policy and promised to keep spending tight, so there is little room left for a new finance minister to maneuver," said Akio Yoshino, who helps manage the equivalent of US$14 billion in assets at SG Yamaichi Asset Management Co.
Tanigaki will also direct Japan's currency policy. Japan sold a record ?9.03 trillion (US$80.5 billion) between January and July to stem the yen's strength and protect profits of exporters such as Toyota and Sharp, whose sales have driven the economic recovery.
Shiokawa cut spending on roads, bridges and other public works by 10 percent in the fiscal year that ended on March 31. The cuts angered LDP leaders who have long favored public works spending to stimulate the economy.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old