Connect with us

Hi, what are you looking for?


US must grasp global impact of debt crisis: Japan

A Royal Mail post box stands on a street in London on July 10, 2013/AFP

A Royal Mail post box stands on a street in London on July 10, 2013/AFP

JAP FINTOKYO, October 15 – Japan’s finance minister said Tuesday US lawmakers needed to get to grips with the seriousness of the budget impasse in Washington and its reverberations around the world.

Taro Aso, who also serves as deputy prime minister, said the Republican Party’s ultra-conservative Tea Party faction appeared to be unaware of the wider implications.

“Many of them don’t seem to understand well the magnitude of the international impact this problem could have,” Aso said at a news conference, according to Dow Jones Newswires.

“In the worst scenario, there will be a default, which is serious” for Japan, one of the biggest holders of US government bonds, Aso was quoted as saying by the Nikkei daily.

“The impact is big at a time when the (Japanese) economy is about to grow,” he added.

But Aso also sounded an optimistic note, saying he expects the issue will be resolved.

“I guess there will be some compromise in time,” he told reporters.

With just days to go before Washington runs out of cash to pay its bills, Republicans and Democrats said they were close to an agreement to end a stand off that has shut the government for two weeks.

Japan holds some $1.1 trillion in Treasuries, making it the biggest lender to the US government after China.

Aso made similar remarks on Friday in Washington after he attended a meeting of finance chiefs of the Group of 20 major economies there.

Advertisement. Scroll to continue reading.

“Japan expects this issue to be resolved once and for all without delay,” Aso said. “This is not only a matter for the United States.”

Aso suggested that the United States needed a solution more permanent than a proposed deal to extend the debt ceiling for six weeks to avert default next week.

Without a deal, there would be “graver consequences than just the closures of national parks, so we are looking at this with a very close eye”, Aso said.

The US government has been partially shut down as Republicans refuse to approve funding unless President Barack Obama guts his signature reform of expanding health care coverage.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...