- Vice Finance Minister Tsutomu Okubo
Japanese government claimed its readiness to compromise with the opposition, in order to avoid the recession. To launch another round of quantitative easing by the end of November, government has to use discretionary budget funds, and needs backing from the opposition, which is in charge of the upper house and may not give its permission to borrow to pay for this year's deficit. Otherwise, the country will run out of money already by the end of this month.
"If we were to choose one bill that we wanted to enact in the current session, it would be the deficit bond bill," Vice Finance Minister Tsutomu Okubo said on Thursday. "The situation could turn into a Japanese ‘fiscal cliff.'"
"I want ruling and opposition parties to sit at a negotiating table and come up with concrete proposals. We should then quickly respond after looking at those proposals," Okubo said.
The Nikkei 225 Stock Average rallied 1.17 per cent, or 104.35 points, to 9,051.22. The broader Topix Index advanced 1.18 per cent , or 8.77 points, to 752.09.
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