Provisional translation

Press Conference by Shoichi Nakagawa, Minister of Finance and Minister for Financial Services

(Excerpt)

Friday, October 7, 2008

[Questions and Answers]

Q.

Although the financial stabilization bill was enacted, stock prices in New York (as measured by the Dow Jones industrial average) have dropped below 10,000 and Japanese stock prices (as measured by the Nikkei stock average) are also about to fall below 10,000. How do you view this situation?

A.

Japan's stock market will open soon. I think that New York stocks' drop below 10,000 yesterday is not related to the passage of the financial stabilization bill, but reflects the unfavorable state of the real economy and financial affairs in the United States. As for the stabilization bill, I hope that it will function properly.

Q.

I have a question about a G-7 meeting scheduled for this weekend. What do you think is the significance of the G-7 meeting, which will be held amid the global financial crisis? Could you also tell me what argument Japan will make at the meeting and with what stance the country will participate in it?

A.

The timing may be or may not be so fortunate, but finance ministers and central bank governors from major developed countries will get together, so frank discussions will be held on how to repair the global financial system and put the economy on the path to recovery. Japan has its own experiences, and I am wracking my brains to figure out what Japan can do and should do, including what it can do in cooperation with other countries. In any case, I think that we need to continue to strengthen and maintain cooperation with the central bank and other relevant domestic organizations as well as with other countries. Such cooperation should be the basis for discussions at the G-7 meeting.

(End)