TOKYO, Feb 4: Japan pledged on Monday to help stabilize currencies and financial conditions in Asia, as well as tackling its own national debt, already the highest of the Group of Seven (G7) countries.

“Considering the fact that Asian economies are moving towards coordinating policies with each other, Japan will contribute to stabilizing currencies and financial conditions in Asia,” Finance Minister Masajuro Shiokawa said in a speech prepared for the new parliamentary session.

“We will propose policy coordination to help stabilize and further develop the world economy at the upcoming meeting of G7 industrial countries,” he said.

Finance ministers from the world’s seven richest nations will meet in Ottawa on Friday.

However, Japan must also overcome its own financial woes, including expanding debt.

“The combined long-term debt balance of the central and local governments will reach 693 trillion yen ($5.2 trillion) at the end of March 2003. It is the worst of all G7 countries,” Shiokawa said.

He said the government needed to return to the situation where spending, excluding interest and debt payments, was covered by revenue, excluding bond issues.

Shiokawa stressed the importance of tax reforms, noting that a quarter of individual income earners and two-thirds of Japan’s 2.5 million companies did not pay tax.—AFP