Press Conference by Shizuka Kamei, Minister for Financial Services

(Excerpt)

(Tuesday, May 11, 2010, from 9:34 to 9:44)

[Opening Remarks by Minister Kamei]

Today, the Cabinet approved the bill for partial revision of [the Act for Partial Revision of] the Insurance Business Act. This was done to address the likely prospect of last year's revision of the Insurance Business Act leading to a situation in which operators of small mutual aid businesses (Kyosai) could no longer survive. It is safe to say that this is more fallout from what was done by the LDP-New Komeito coalition as part of its "discard the weak" policy, and we have now set the stage to ensure the viability of these businesses by amending the law [once again] during the current Diet session.

[Questions and Answers]

Q.

In connection with the Greek financial crisis, central banks of the respective nations, with that of the EU (European Union) being the foremost example, are beginning to take actions to prevent a crisis recurrence. It is said that, though it is claimed as an exceptional step, the European Central Bank will start purchasing government bonds, among other actions. Please tell us how you view the series of such measures, as well as what you think their repercussions on Japan will be.

A.

Considering that the very purpose of the EU is to form a community in which the members help each other out, what it is doing may be a matter of course - I still think that it is a very welcome step. The IMF (International Monetary Fund) seems to be involved in this move as well, which means that Japan is also providing indirect support through the funds it contributes to the IMF. In that sense, I am hoping that the EU will solve the problem on its own initiative by making every possible effort; that, in other words, the EU will work hard so that this problem should not drag the global economy down.

(End)