Top �� What's up around the Prime Minister �� October, 2002

The Thirty-First Meeting of the Council on Economic and Fiscal Policy (CEFP) Wednesday, October 30, 2002 At the Prime Minister's Official Residence, the thirty-first meeting of the Council on Economic and Fiscal Policy was held, and the "Comprehensive Measures to Accelerate Reforms" were decided. Through these "Comprehensive Measures to Accelerate Reforms," the Government will accelerate structural reforms via the four main pillars of "financial system reform," "tax reform," regulatory reform" and "reform of the government expenditure structure," aiming at the realization of self-sustaining economic growth led by private-sector demand while overcoming deflation. In terms of specific policy management regarding the revitalization of finance and industry, in order to accelerate the disposal of non-performing loans and to advance industrial revitalization and employment measures in an integrated manner, the "Headquarters for Industrial Revitalization and Employment Measures" will be established and the Basic Guidelines for industrial reorganization and rapid revival will be drafted. In addition, the "Industrial Revival Corporation" (provisional name) is to be established to undertake the revival of businesses it deems viable by purchasing their debt. Regarding the strategy to accelerate structural reform toward economic revitalization, various measures will be taken including the advancement of tax reform toward sustainable socioeconomic revitalization, revitalization of the securities and real estate markets to contribute to overcoming asset deflation, the promotion of an urban renaissance projects to induce private sector investment and consumption, and the acceleration of regulatory reform to stimulate latent demand. Furthermore, with regard to the enhancement of the safety net, the measures specify the advancement of employment measures in response to acceleration of non-performing loans disposal, the strengthening of finance measures to strongly support the revival of small and medium enterprises, and the full utilization of policy-based finance during the intensive period for disposal of non-performing loans. Following the meeting, Prime Minister Koizumi released a statement that the Financial Revival Plan would be implemented without delay in order to conclude the disposal of non-performing loans in FY2004.