A U.S. Treasury official said Monday in Tokyo the global credit crunch is gradually easing following efforts by the Federal Reserve and other central banks.
Clay Lowery, assistant secretary for international affairs, said the Fed and other central banks have coordinated their actions to protect the financial system from possible disruptions after the U.S. subprime mortgage crisis surfaced last year.
As a result, the availability of credit has improved "modestly," Lowery told the Foreign Correspondents' Club of Japan.
"Already, we have seen some indication that this combination of actions is beginning to have the desired effect," he said.
Lowery urged Japan to do more to prove its openness to foreign investment. "It is therefore important that Japan sends a clear message that it is open to foreign investment," he said.
The government recently rejected a request from British hedge fund The Children's Investment Fund to boost its stake in major utility Electric Power Development Co., or J-Power.
