HISTORIC PRESS RELEASE : Chancellor Gordon Brown Welcomes Japanese Bridge Bank Plan [July 1998]

The press release issued by HM Treasury on 3 July 1998.

Chancellor Gordon Brown today welcomed the accelerated announcement yesterday of the Japanese authorities ”Comprehensive Plan for Financial Restructuring’, as evidence of Japan’s commitment to tackle its economic problems.

The Chancellor said:

“This policy action marks an important step forward for Japan. The ‘bridge bank’, and other proposals to improve the disposal of bad loans, provide a firm signal of Japan’s commitment to tackling its financial and structural problems. This will be crucial to restoring confidence and strengthening the Japanese economy.”

Stressing the need for credible and rapid action, Mr Brown said:

“We look forward to the speedy implementation of these measures, and the steps necessary to restore the health of the financial sector and stimulate demand. This will be vital for sustained economic recovery in Japan and Asia as a whole.”

There have been extensive G7 discussions on the Japanese economy this year, most recently at a meeting in Tokyo on June 20 between G7 and Asian Finance Deputies, which concluded that restructuring and revitalisation of the Japanese economy and financial system was urgently needed.