The state minister for financial affairs on Friday balked at a proposal by a Liberal Democratic Party task force to allow banks to repay with their shareholdings trillions of yen in public funds they received in 1998 and 1999 in order to replenish their depleted capital bases.
"I am aware of the proposal, but I question whether the public will support transferring the risks (of a further slide in share prices) to the public sector," Hakuo Yanagisawa told a news conference.
Yanagisawa was responding to a question regarding a proposal put forward at the previous day's meeting of the LDP task force, which comprises 11 legislators and is charged with preventing a further plunge in share prices.