Japanese government bond market: “We are not a Bangladesh”

The Japanese government bond market is laughably old-fashioned and inefficient. Settlement, for example, takes place only on dates ending in five or zero - a practice derived from the 19th-century rice market. At last, the Ministry of Finance is looking at wide-ranging reforms. With combined new bond issues for FY1995 and 1996 expected to reach almost ¥100 trillion, it has little choice. Andrew Horvat reports.

Early last month a masked man wearing a lamé cloak and a silver turban, decorated with half-moons and stars, sat down outside the Japanese Ministry of Finance (MoF). He announced that he would set himself on fire to protest the use of ¥685 billion ($6.5 billion) in taxpayers’ money to bail out insolvent housing loan corporations (jusen).

The man’s bizarre suicide threat is just the most dramatic example of the widespread protests in Japan – including a protracted sit-in by opposition MPs in parliament – over the government’s rescue of the jusen.

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