Japan national debt tops one quadrillion yen
POSTED: 09 Aug 2013 6:36 PM
Japan's eye-watering national debt has topped one quadrillion yen, official data showed Friday, a record figure that underlines Tokyo's struggle to curb its huge borrowing.
TOKYO: Japan's eye-watering national debt has topped one quadrillion yen, official data showed Friday, a record figure that underlines Tokyo's struggle to curb its huge borrowing.
The figure supplied by the finance ministry of 1.008 quadrillion yen by the end of June amounts to about $10.42 trillion at current exchange rates.
A quadrillion is one thousand trillion.
Tokyo has the dubious distinction of having, proportionately, the biggest debt pile among industrialised nations, more than twice the size of its economy.
The lion's share of that debt is from long- and short-term Japanese government bonds, as well as other borrowing.
The staggering figure, about 1.7 percent higher than the previous quarter, comes a day after Japan pledged to slash its budget and get spending under control.
Japan has not faced a public debt crisis like the kind seen across the debt-riddled eurozone, largely because most of its low-interest debt is held domestically rather than by international creditors.
But the International Monetary Fund and others have issued warnings about Tokyo's ever-increasing borrowing, after a series of sovereign credit rating downgrades in recent years.
This week the IMF called on Japan to adopt a "credible" fiscal plan to repair its books, including raising sales taxes to generate new revenue.
Prime Minister Shinzo Abe's government is mulling whether to go ahead with a series of sales tax rises that would double the rate to 10 percent by 2015, a key source of new income but one that some fear would stall his economy-boosting plan dubbed "Abenomics".
- AFP/xq
- wong chee tat :)
Showing posts with label imf. Show all posts
Showing posts with label imf. Show all posts
Saturday, August 10, 2013
Monday, April 29, 2013
IMF 'carefully' monitoring capital flows to Asia
IMF 'carefully' monitoring capital flows to Asia
POSTED: 29 Apr 2013 8:27 PM
The International Monetary Fund (IMF) said Monday it is "carefully" monitoring massive capital flows into Asia.
SINGAPORE: The International Monetary Fund (IMF) said Monday it is "carefully" monitoring massive capital flows into Asia and urged the region's policymakers to guard against risks of overheating.
The level of the inflows -- which have sent Asian stocks and property prices skyrocketing -- are close to or above historical trends in most economies including those in Southeast Asia, the IMF said.
"We are seeing financial pressures -- you may call them imbalances, or the risk of imbalances -- rising," said Anoop Singh, director for the IMF Asia and Pacific Department.
"And because these can worsen quickly, they certainly are being monitored very carefully. Therefore the challenge policymakers face is how to guard against the potential build-up of national imbalances while continuing to deliver appropriate support for growth."
Singh was speaking at a news conference launching the IMF's regional economic outlook, which maintained projections that the region will grow 5.7 per cent this year.
"Our basic point is that national stability concerns in Asia are generally rising and... are close to, or above trend in most economies, including in the ASEAN (Association of Southeast Asian Nations) region," he said.
"And therefore monetary policymakers need to be ready to spot early and decisively to emerging risks of overheating."
The IMF did not name any economy at risk of overheating, but stock markets in Indonesia, the Philippines and Thailand have recently seen steep increases.
Property prices in economies like Hong Kong and Singapore have also been red-hot, prompting the governments to introduce cooling measures.
In its report the IMF said the inflows have generally "not been excessive so far" but could reach levels difficult to manage.
Large flows of funds from industrialised economies into the region where they can get higher returns, and easy domestic credit due to low interest rates, have pushed asset prices sharply higher.
The speculative buying, in contrast to long-term investments, has sparked concerns about potential price bubbles which could deflate easily as the funds are withdrawn as quickly as they came in, devastating financial systems.
The IMF said governments in the region face a "delicate balancing act" of supporting economic growth while managing the huge money flows.
It suggested that the funds should be invested in infrastructure, education and health to support more inclusive and sustained economic growth, and also urged regional governments to broaden domestic revenue sources.
- AFP/jc
- wong chee tat :)
POSTED: 29 Apr 2013 8:27 PM
The International Monetary Fund (IMF) said Monday it is "carefully" monitoring massive capital flows into Asia.
SINGAPORE: The International Monetary Fund (IMF) said Monday it is "carefully" monitoring massive capital flows into Asia and urged the region's policymakers to guard against risks of overheating.
The level of the inflows -- which have sent Asian stocks and property prices skyrocketing -- are close to or above historical trends in most economies including those in Southeast Asia, the IMF said.
"We are seeing financial pressures -- you may call them imbalances, or the risk of imbalances -- rising," said Anoop Singh, director for the IMF Asia and Pacific Department.
"And because these can worsen quickly, they certainly are being monitored very carefully. Therefore the challenge policymakers face is how to guard against the potential build-up of national imbalances while continuing to deliver appropriate support for growth."
Singh was speaking at a news conference launching the IMF's regional economic outlook, which maintained projections that the region will grow 5.7 per cent this year.
"Our basic point is that national stability concerns in Asia are generally rising and... are close to, or above trend in most economies, including in the ASEAN (Association of Southeast Asian Nations) region," he said.
"And therefore monetary policymakers need to be ready to spot early and decisively to emerging risks of overheating."
The IMF did not name any economy at risk of overheating, but stock markets in Indonesia, the Philippines and Thailand have recently seen steep increases.
Property prices in economies like Hong Kong and Singapore have also been red-hot, prompting the governments to introduce cooling measures.
In its report the IMF said the inflows have generally "not been excessive so far" but could reach levels difficult to manage.
Large flows of funds from industrialised economies into the region where they can get higher returns, and easy domestic credit due to low interest rates, have pushed asset prices sharply higher.
The speculative buying, in contrast to long-term investments, has sparked concerns about potential price bubbles which could deflate easily as the funds are withdrawn as quickly as they came in, devastating financial systems.
The IMF said governments in the region face a "delicate balancing act" of supporting economic growth while managing the huge money flows.
It suggested that the funds should be invested in infrastructure, education and health to support more inclusive and sustained economic growth, and also urged regional governments to broaden domestic revenue sources.
- AFP/jc
- wong chee tat :)
Sunday, April 21, 2013
IMF steps up calls for Britain to ease austerity drive
IMF steps up calls for Britain to ease austerity drive
POSTED: 21 Apr 2013 8:59 AM
A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
LONDON: A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
David Lipton, the IMF's first deputy managing director, said the "pace of consolidation" should be reconsidered in light of the weaker than expected British economy.
Earlier this week the IMF cut Britain's growth forecast growth for this year from 1 per cent to 0.7 per cent and lowered its 2014 projection from 1.9 per cent to 1.5 per cent.
"The Fund's view is clear," Lipton told Sky News. "The UK economy has turned out to be somewhat weaker than had been foreseen, so our view is that the pace of consolidation ought to be reconsidered, and we'll want to come and have some discussions over that."
His comments come after ratings agency Fitch lowered Britain's status from AAA to AA+ on Friday, citing a "weaker economic and fiscal outlook".
In response, Britain's coalition government indicated that the downgrade would not alter the path of deep spending cuts set out by finance minister George Osborne.
Fitch's downgrade comes after rival agency Moody's stripped Britain of a triple-A debt rating on February 22, dropping it by one notch. Moody's argued that government debt was still mounting and that growth was too weak to reverse the trend before 2016.
Lipton's remarks add to the pressure from the IMF's chief economist, Olivier Blanchard, who has also urged Britain to lessen the pace of its austerity programme because of the threat of a triple-dip recession.
Official economic data out next week will show whether Britain fell into recession during the first quarter of 2013.
Lipton said it remained "very important" for the British government to continue reducing its debt.
But he added: "The question now is whether the pace is right or too ambitious given the weakness of the economy.
"The key to us, the bottom line to us, is that they may want to consider adjusting the pace of consolidation."
A spokeswoman for Britain's Treasury stressed that Britain is forecast to have stronger growth than France or Germany in 2013. Difficulties in the eurozone were "creating economic headwinds", she added.
"However, as the Chancellor said at the Budget, we are slowly but surely fixing this country's economic problems," she added.
"The deficit is down by a third, a million and a quarter new private sector jobs have been created and, because of the credibility the government has earned, families and businesses are benefiting from near-record low interest rates."
Recent official data revealed that British gross domestic product (GDP) shrank 0.3 per cent in the fourth quarter of 2012 compared with the previous three months.
Another contraction in the first quarter of 2013 would place Britain in its third recession in under four years.
- AFP/jc
- wong chee tat :)
POSTED: 21 Apr 2013 8:59 AM
A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
LONDON: A senior member of the International Monetary Fund added to calls Saturday for Britain to slow the pace of its austerity programme, a day after the country was stripped of its triple-A rating.
David Lipton, the IMF's first deputy managing director, said the "pace of consolidation" should be reconsidered in light of the weaker than expected British economy.
Earlier this week the IMF cut Britain's growth forecast growth for this year from 1 per cent to 0.7 per cent and lowered its 2014 projection from 1.9 per cent to 1.5 per cent.
"The Fund's view is clear," Lipton told Sky News. "The UK economy has turned out to be somewhat weaker than had been foreseen, so our view is that the pace of consolidation ought to be reconsidered, and we'll want to come and have some discussions over that."
His comments come after ratings agency Fitch lowered Britain's status from AAA to AA+ on Friday, citing a "weaker economic and fiscal outlook".
In response, Britain's coalition government indicated that the downgrade would not alter the path of deep spending cuts set out by finance minister George Osborne.
Fitch's downgrade comes after rival agency Moody's stripped Britain of a triple-A debt rating on February 22, dropping it by one notch. Moody's argued that government debt was still mounting and that growth was too weak to reverse the trend before 2016.
Lipton's remarks add to the pressure from the IMF's chief economist, Olivier Blanchard, who has also urged Britain to lessen the pace of its austerity programme because of the threat of a triple-dip recession.
Official economic data out next week will show whether Britain fell into recession during the first quarter of 2013.
Lipton said it remained "very important" for the British government to continue reducing its debt.
But he added: "The question now is whether the pace is right or too ambitious given the weakness of the economy.
"The key to us, the bottom line to us, is that they may want to consider adjusting the pace of consolidation."
A spokeswoman for Britain's Treasury stressed that Britain is forecast to have stronger growth than France or Germany in 2013. Difficulties in the eurozone were "creating economic headwinds", she added.
"However, as the Chancellor said at the Budget, we are slowly but surely fixing this country's economic problems," she added.
"The deficit is down by a third, a million and a quarter new private sector jobs have been created and, because of the credibility the government has earned, families and businesses are benefiting from near-record low interest rates."
Recent official data revealed that British gross domestic product (GDP) shrank 0.3 per cent in the fourth quarter of 2012 compared with the previous three months.
Another contraction in the first quarter of 2013 would place Britain in its third recession in under four years.
- AFP/jc
- wong chee tat :)
Tuesday, January 8, 2013
S'pore's financial sector to be assessed by IMF
S'pore's financial sector to be assessed by IMF
By Brandon Tanoto | Posted: 08 January 2013 1445 hrs
SINGAPORE: Singapore's financial sector is set to undergo a financial stability assessment.
The Monetary Authority of Singapore (MAS) announced on Tuesday that Singapore will participate in the International Monetary Fund's Financial Sector Assessment Programme (FSAP) in 2013.
Singapore last participated in the programme in 2004.
As an international financial centre, MAS said Singapore is committed to undergoing periodic financial stability assessments.
Under the programme, Singapore will be assessed against international standards for the banking, insurance and securities sector to benchmark itself to the prescribed standards.
Meanwhile, the assessment will also contribute to a deeper understanding of the stability and resilience of the financial sector.
MAS is currently working closely with the financial sector in preparation for the assessment.
The FSAP mission will visit Singapore in April and May for the standards and financial stability assessments.
-CNA/ac
- wong chee tat :)
By Brandon Tanoto | Posted: 08 January 2013 1445 hrs
SINGAPORE: Singapore's financial sector is set to undergo a financial stability assessment.
The Monetary Authority of Singapore (MAS) announced on Tuesday that Singapore will participate in the International Monetary Fund's Financial Sector Assessment Programme (FSAP) in 2013.
Singapore last participated in the programme in 2004.
As an international financial centre, MAS said Singapore is committed to undergoing periodic financial stability assessments.
Under the programme, Singapore will be assessed against international standards for the banking, insurance and securities sector to benchmark itself to the prescribed standards.
Meanwhile, the assessment will also contribute to a deeper understanding of the stability and resilience of the financial sector.
MAS is currently working closely with the financial sector in preparation for the assessment.
The FSAP mission will visit Singapore in April and May for the standards and financial stability assessments.
-CNA/ac
- wong chee tat :)
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