Japan's Prime Minister Mr Junichiro Koizumi pledged drastic reform in his first policy speech today. He promised a resolution of the nation's bad loans crisis within three years.
Mr Koizumi, who triggered wary reactions from China and South Korea over his earlier hawkish remarks, carefully stressed his intention to strengthen ties with Asia while vowing to maintain Japan's security partnership with the United States.
"I will pursue reforms in the nation's economic, fiscal, administrative, social and political systems in my belief that there will be no revival and development of Japan without structural reforms," Mr Koizumi told the lower house in his first keynote speech since being elected on April 26th.
"The top priority of my task is to rebuild the economy and establish a Japanese society with confidence and pride," he said to loud applause from his Liberal Democratic Party colleagues.
"First of all we will aim at final disposal of bad loans in two to three years," Mr Koizumi said. "To achieve that goal we will forge a framework of the final disposal of bad loans by introducing guidelines for discussions among banks and others to restore companies."
"I will present concrete steps for regulations on banks to hold stocks and the establishment of a stock purchase organisation - taking into account harmony between the stability of the banking system and the market mechanism," he added.
AFP