Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

No plans to bail out Japan - IMF

By Jennifer Liberto, senior writer


WASHINGTON (CNNMoney) -- The International Monetary Fund said Thursday that Japan has the financial means to get through this disaster and get on the road to reconstruction and growth.

The IMF, which helps poorer nations get through similar disasters, is watching the situation closely, spokeswoman Caroline Atkinson said in a briefing Thursday. But she added that, so far, IMF leaders believe Japan has taken appropriate steps.

"We do believe that what the Japanese government has been doing on the monetary side to ensure stability of their financial system and doing what is necessary to meet the needs of the people of this crisis is the appropriate policy," she said.

On Monday, the Bank of Japan injected $180 billion into its financial system to shore up the economy to weather the lasting effects of the earthquake, tsunami and possible nuclear disaster.

In the short term, Japan needs to focus on search and rescue, humanitarian and infrastructure demands, the IMF spokesman said. And the IMF considers Japan on strong footing to handle that without financial help.

"It's a strong and wealthy society, and the government has the full financial resources to address those needs," Atkinson said.

Once it gets through the crisis, Japan should see a bump in its growth, as it starts the rebuilding process.

"The most important thing for fiscal space going forward is to revive the Japanese economy and get growth," Atkinson said.

She said that IMF will be releasing new estimates of the Japanese economy and the impact of the disaster on the world economy on April 11.

Atkinson refused to comment on whether IMF was concerned about the rapid appreciation of the Japanese yen, because it considers it a "short-term" effect at this point. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.96%3.99%
15 yr fixed3.14%3.14%
5/1 ARM3.29%3.34%
30 yr refi3.98%4.06%
15 yr refi3.16%3.21%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 19,820.31 -6.46 -0.03%
Nasdaq 5,546.40 7.67 0.14%
S&P 500 2,270.29 2.40 0.11%
Treasuries 2.37 0.04 1.80%
Data as of 11:45am ET
Company Price Change % Change
Bank of America Corp... 22.42 0.38 1.70%
Citigroup Inc 57.53 -0.85 -1.46%
Chesapeake Energy Co... 7.02 0.01 0.13%
Reynolds American In... 57.90 0.23 0.39%
Apple Inc 120.01 0.01 0.01%
Data as of 11:30am ET
Sponsors

Sections

2,000 GM workers are losing their job on January 20, 2017, the day Donald Trump takes office. Many of these workers in Ohio and Michigan voted for Trump. They hope he'll save their jobs. More

Customers in San Francisco and Washington, D.C. will soon get food delivered in the ground robots. More

Millennials should start thinking about investing for their future now, because time is the one thing they have on their side. More