real-time news and commentary for investors
Tuesday, Aug 27
Japan considers allocating $257B just to service its debts
- Japan's Ministry of Finance reportedly wants to allocate a record ¥25.3T ($257B) just to service the country's mammoth debt of ¥1,000T ($10T) - which is double the size of its economy - for the next fiscal year.
- The expected provision is 13.7% higher than for this FY, indicating how the ministry wants to guard against a possible rise in long-term interest rates.
- The speculation comes as Japan debates whether to increase sales tax, a move seen as important for dealing with the country's debt but also as possibly hurting its nascent growth.
- ETFs - Stocks: EWJ, NKY, EWV, EZJ, ITF, JSC, JPP, DXJ, SCJ, DFJ, FJP, JPNL, JPNS, DXJS. Bonds: JGBT, JGBL, JGBS, JGBD. Currency: FXY, JYN, YCL, YCS