Executives' Comments  Press Conferences   Chairman Yonekura's comments at his Press Conference

May 20, 2013

Following is the gist of remarks made by Chairman Yonekura at his Press Conference. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

Growth strategy

While planning to launch its growth strategy in June, the government is firmly determined to implement necessary policies for Japan's economic recovery without sticking to the schedule. It is quite a flexible, speedy, aggressive and admirable approach.

Immediate corporate tax reform such as the abolition of the special local corporate tax defined as a tentative measure should be included in the policy menu so that Japanese companies can compete with foreign businesses on an equal footing.

Long-term interest rates

A rise in share prices has encouraged money to flow from Japan's government bonds to stocks. It has caused a recent hike of long-term interest rates. Continued wild fluctuations in interest rates will have a negative impact on corporate financing.

The government needs to avoid falling into the critical status by maintaining appropriate debt management policies. At the same time, the government is required to keep sending the market a clearly message that they will work harder until fiscal soundness is restored.