25.2 C
New York
Monday, July 4, 2022

Japan new debt issuance to top prior year for first time since Abe took office: sources

Japan new debt issuance to top prior year for first time since Abe took office: sources© Reuters. Japanese PM Abe and Dutch PM Rutte meet in Rotterdam

TOKYO (Reuters) – Japan expects to issue more new debt in the fiscal year ending in March 2021 than the previous year, the first such increase since Prime Minister Shinzo Abe took office, two government sources told Reuters.

Abe returned to power in December 2012 with a pledge to revive the economy and restore public finances at the same time.

His government has since reduced new borrowing costs to 32.7 trillion yen ($298.88 billion) estimated for the next fiscal year starting on April 1.

However, the Ministry of Finance (MOF) is expected to estimate new bond issuance will rise to 33.7 trillion yen in fiscal 2020.

The expected increase reflects higher social security spending to support the aging population and the cost of servicing the world’s heaviest public debt burden.

The sources spoke to Reuters on condition of anonymity because they are not authorized to speak to the media.

The latest MOF calculations, based on a strong economic growth estimate of 3 percent annually, underscore the difficulty policymakers face in striking a balance between efforts to achieve economic growth and fiscal reform.

The ministry will submit the calculations to parliament when it is convened later this month to debate the next fiscal year’s budget draft, the sources said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles