[Provisional Translation]

Prime Minister Shinzo Abe held the 11th meeting in 2016 of the Council on Economic and Fiscal Policy at the Prime Minister's Office.

At the meeting, there was a discussion on the current global financial and economic situation.

Based on the discussion, the Prime Minister said,

“Market fluctuations have occurred following the result of the national referendum on the UK exit from the EU. Against this backdrop, Japan, as the country holding the G7 Presidency, moved quickly to hold a meeting of G7 Finance Ministers and Central Bank Governors, and has issued a joint statement.

I believe that, through this statement, in which the G7 nations announce that steps have been taken to ensure adequate liquidity and that they will continue to cooperate on market stability, we have sent out a clear message to the world, and particularly the markets, about the shared determination of the international community.

Yesterday, Tokyo markets were able to regain stability, but a sense of uncertainty and concerns over risk remain. We will continue to closely watch the currency and stock markets, and pay close attention to developments.

It is imperative that the G7 nations continue to cooperate in sending a unified message about their strong commitment to work to stabilize markets. In regard to the impact on the real economy of Japan, it is possible that such impacts will appear over the mid- to long-term, and we must continue to carefully monitor further developments.

Today, we received a report from Council member Mr. Sakakibara on immediate industry trends. Towards global economic growth, we must steadily deal with each and every emerging risk. We will take all measures to ensure that this situation does not impact the real economy of Japan, above all the activities of small- and medium-sized enterprises. I request that members of the business community give due consideration to transaction conditions, among other issues, for the small- and medium-sized companies that are your business partners.

I would like Minister Aso to work in cooperation with Governor Kuroda of the Bank of Japan to pay even closer attention to financial and currency market movements. Furthermore, I would like Minister Aso to work in close cooperation with the other G7 nations and make the necessary economic and financial responses in a flexible manner. I would like Governor Kuroda to continue to work closely with the central banks of G7 nations to ensure adequate market liquidity. In addition, I would also like the BOJ to support financial intermediary functions through the provision of ample funds, to ensure that there is no capital insufficiency, including for Japanese companies that are engaged in business in the UK. Working together with the relevant ministers, I would like Minister Ishihara to analyze and comprehend the real economy, and take thorough measures to ensure appropriate economic management. In regard to domestic small- and medium-sized enterprises, I would like Minister Hayashi to take all measures to ensure that this situation does not impact the real economy of Japan.”