Japanese Prime Minister Junichiro Koizumi's government will this week unveil a package focusing on the nation's non-performing loan problem, but there are signs that harsh action on the banking sector will be watered down amid fierce political opposition.
Prime Minister Junichiro Koizumi came under pressure Monday to balance tough reforms with policies to limit the economic shock in a policy package due this week aimed at fixing banks and halting years of deflation.
Japan's unemployment rate climbed to a record high for the fourth straight month in December and household spending sagged, providing little hope that the world's second-largest economy will pull out of recession any time soon.
Prime Minister Junichiro Koizumi's government laid out guidelines for Japan's fiscal 2002-03 budget Tuesday amid a torrent of reminders about the nation's tattered public finances, including yet another credit rating downgrade.
Japan's government said Wednesday it will spend a fresh 2.5 trillion yen ($20.39 billion) to buoy the ailing economy by tapping a special fund to avoid breaking its pledge to limit fresh bond issuance.