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New BOJ chief slams Japan debt as 'abnormal'

Published on Mar 28, 2013 6:24 PM
 
The new head of the Bank of Japan (BOJ) Haruhiko Kuroda (above) on Thursday called the country's eye-popping national debt "abnormal" and warned that Tokyo must avoid a plunge in confidence among bondholders. -- PHOTO: REUTERS

TOKYO (AFP) - The new head of the Bank of Japan (BOJ) on Thursday called the country's eye-popping national debt "abnormal" and warned that Tokyo must avoid a plunge in confidence among bondholders.

Japan is struggling with chronically anaemic growth while its ever-increasing debt mountain stands at more than twice the size of the economy.

That is the worst ratio among industrialised nations and one set to grow as a rapidly ageing population strains the social welfare system.

"It is abnormal when the debt stands at more than twice GDP, and it's not sustainable," central bank chief Haruhiko Kuroda told parliament.

 
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