US subprime woes won't lead to credit crunch - Japan minister |
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Wed, 22 Aug 2007 05:39
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SEOUL (Thomson Financial) - The US subprime mortgage loan problem, which sent stocks plummeting last week, is unlikely to lead to a global credit shortage, Japan's Finance Minister Koji Omi said Wednesday.'Central banks are providing enough liquidity into markets to prevent any credit crunch,' Omi said in an opening speech at a meeting with his South Korean counterpart Kwon O-Kyu.But officials should work to prevent sharp market fluctuations due to investor jitters, he said.Despite risk factors such as the US housing recession, global oil price rises and the US subprime mortgage loan defaults, Omi said global economies are still posting steady growth.He said South Korea and Japan should work together to reduce global economic and financial instability.'South Korea and Japan face similar challenges such as ageing populations and business restructuring,' Kwon said in his speech.'We should join hands to tackle together instabilities occurring in the global economy and financial markets.'Kwon reiterated that South Korea's economy will expand in the mid-four-percent range this year, after growing five percent last year.afp/mb-mb/mbCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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US subprime woes of no great concern; global economy strong - Indonesia minister 