Finance Minister Masajuro Shiokawa on Wednesday countered a bond-issuance plan floated by Heizo Takenaka, economic and fiscal policy minister, that aims to help the Cabinet achieve its 30 trillion yen bond issue cap for fiscal 2001.
Takenaka on Tuesday suggested that the government consider issuing bonds that can be converted to state-held shares, such as those of Nippon Telegraph and Telephone Corp. and Japan Tobacco Inc.
"I believe Takenaka is thinking that such shares can be issued outside the 30 trillion yen framework, but government bonds are government bonds," Shiokawa told a news conference. "More debt issues could damage market trust toward our government bonds."
Although Takenaka has not elaborated on the idea, he is believed to be thinking of government bonds similar to convertible bonds issued by private corporations. This would allow the smooth transfer of those shares from the public to private sectors.
Shiokawa instead suggested that the government sell its assets.
"By selling their assets, government ministries and agencies will have to change their attitudes toward budget-making, which has long been centered on debt issues."