Kuroda warns Japan debt ‘not sustainable’

Kuroda warns Japan debt ‘not sustainable’ Japan’s central bank governor has told parliament that the government’s vast and growing debt is “not sustainable,” and that a loss of confidence in state finances could “have a very negative impact” on the entire economy.

The warning comes as Shinzo Abe’s administration attempts to drag Japan out of more than a decade of deflation by means of aggressive monetary and fiscal stimulus.

In January, weeks after taking office, the government unveiled a Y10.3tn ($109bn) spending package while leaning on the Bank of Japan to buy more of its bonds – a strategy described by Morgan Stanley MUFG Securities as “print and spend.”

http://link.ft.com/r/VKY5JJ/CWSN1K/NS9NWA/II5ULV/JQ857H/AZ/h?a1=2013&a2=3&a3=28