Japan ready to inject up to 110 billion dollars in the banks

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The Japanese government stated Sunday that it was ready to inject up to 10.000 billion yens (110 billion dollars) in the banks of the country in difficulty.

The limit of the plan of recapitalisation of the banks was fixed until now at 2.000 billion yens, but that is “rather insufficient”, declared the Minister for the Economic policy and budgetary, Kaoru Yosano.

“I think that (this limit) will be fixed at approximately 10.000 billion yens”, it indicated in an interview on television.

Japanese the Prime Minister Taro Aso could give a little later in the course of the day the contour of this plan, which falls under emergency measures aiming at stabilizing the Japanese financial markets.

Mr. Yosanio however wanted to be reassuring on the health condition of the Japanese banks: “We are absolutely not in a situation where one would see the Japanese banks crumbling one after the other”, he still declared.

The Japanese government had confirmed Tuesday that it was ready to inject capital in the large banks of the country, if that proved to be necessary to prevent a draining of the credit to the companies.

“The government will inject capital in order not to reduce the level of financing for the small and medium-size companies”, had declared Mr. Yosano.( Finance Information City )