The comprehensive package of so-called antideflation measures spelled out by the government late last month incorporates steps for revitalizing Japan's financial and industrial sectors, stimulating economic activity and bolstering the safety net for workers.
Among other things, the package included a program aimed at settling the bad loan problem by the end of fiscal 2004. This program calls for more strictly assessing banks' assets, beefing up their core capital, and introducing tougher standards of corporate governance.
It also proposes the creation of a new industrial revitalization body that would buy bad loans from financial institutions to support companies with valid prospects for rehabilitation.