Japan to finalise stimulus package: PM
TOKYO: Japan plans to finalise an economic stimulus package later on Monday to shore up a recovery threatened by a strong yen and deflation, Prime Minister Yukio Hatoyama said.
The Nikkei daily has said the package would be worth 24 trillion yen (272 billion dollars), of which 7.1 trillion yen (80.5 billion dollars) would be actual spending, with the remainder loan guarantees and other measures.
"Finally we will make a decision today," Hatoyama told reporters when asked about the package, which was delayed by disagreements between partners in the ruling coalition late last week.
It is likely to be approved by cabinet Tuesday, local news reports said.
The package, to be funded by a supplementary budget, was held up Friday when the financial services minister, Shizuka Kamei, boycotted a ministerial meeting while demanding eight trillion yen in additional spending.
Hatoyama's centre-left Democratic Party of Japan (DPJ) relies on the support of the small party Kamei leads, the People's New Party, to smoothly pass laws in the upper house.
The premier has warned of the risk of a double-dip recession as the yen's recent rapid rise and price deflation have threatened Japan's feeble recovery from its worst postwar recession.
The yen, after hitting a 14-year high of 84.82 to the dollar late last month, was back down to around 90 to the dollar Monday. A strong yen makes the country's exports less competitive.