Thursday, March 17, 2011

The IMF rules out rescue of Japan

The triple disaster facing Japan for a week-by the earthquake, tsunami and the nuclear crisis, will certainly have a major impact on the Japanese economy and public accounts. But despite the heavy debt the country is suffering and uncertainty, the International Monetary Fund does not intend to come to the rescue.

Japan, as the international organization "is a strong economy and his government" has the financial resources to meet their immediate needs. " This was explained by Caroline Atkinson, spokesman for the IMF, during the weekly press conference offered by the institution. "There may be a very quick economic recovery after these disasters," he said.

The IMF is the first institution to jump on stage and mobilize immediate assistance when a country suffers a major natural disaster, especially when it comes to poor countries. In the case of Japan, one of the seven biggest industrial powers on earth, the Washington-based agency currently takes a position to monitor the situation.

Atkinson believes that the Japanese authorities are adopting appropriate policies to address this crisis, but admits that the situation is "highly uncertain" because the natural disaster has three items that address. The impact, they tend to think from the body, will be felt in the short term by way of a drop in economic activity.

So the IMF is preparing to tweak the growth forecasts for Japan, to be published in mid-April. That said, economists believe the body that are taking steps to preserve the stability of the Japanese financial system, injecting U.S. $ 180,000 million, and assisting the victims of the disaster.

"This policy is appropriate in these situations," clinched. Another thing is to determine whether these measures are sufficient to prevent the effects of the disaster affecting the economy in the long term. The IMF believes that as goes beyond the stage of crisis management, "Japan will experience a surge in growth with the rebuilding process." And the economy will recover faster and reach its full potential will again point out, important for long-term deal with the fiscal problems the country has been dragging.

Japanese debt is the highest in the industrialized countries, equivalent to 200% of its gross domestic product. Japan does not yet requested financial assistance from the IMF and the G7.

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