Japan Finance Min. Katayama Stresses Financial Preparedness

Tokyo, June 3 (Jiji Press)–Japanese Finance Minister Satsuki Katayama on Wednesday pledged to take all possible financial measures to cushion the impact on people’s lives and economic activity of tensions in the Middle East. The government “will ensure full financial preparedness to minimize risks” associated with the Middle East crisis, Katayama said in a policy speech before both chambers of the Diet, the country’s parliament. She made the speech after the government submitted a fiscal 2026 supplementary budget bill to the Diet that features new reserve funds for measures in deal with the situation in the Middle East. In the speech, Katayama explained that the government would issue additional deficit-covering bonds to finance the supplementary budget. Meanwhile, she said that the government is expected to be able to reduce the issue amount of Japanese government bonds for fiscal 2025, which ended in March, thanks to tax and non-tax revenue, a situation that allows the government not to increase the outstanding amount of JGBs. It would be feasible to issue additional deficit-covering bonds without affecting the bond market, she said, seeking public understanding. END [Copyright The Jiji Press, Ltd.]