FACTBOX-Recent comments on BOJ governor selection

Mon Feb 25, 2008 4:40am EST
 
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Feb 25 (Reuters) - Bank of Japan Governor Toshihiko Fukui's term ends on March 19, and the government is expected to name candidates to succeed Fukui and the central bank's two deputy governors before the end of the month.

Current Deputy Governor Toshiro Muto is seen as the leading candidate to replace Fukui, though it was unclear if he could win the backing of the main opposition Democratic Party.

The opposition could block a nominee through its control of the upper house because the governor's appointment must be approved by both houses of parliament.

Following are recent comments by Japanese policymakers on the selection of the next governor.

ICHIRO OZAWA, LEADER OF THE DEMOCRATIC PARTY, THE MAIN OPPOSITION PARTY, Feb. 25, quoted by public broadcaster NHK as telling a news conference:

Ozawa acknowledged that Prime Minister Yasuo Fukuda has sounded him out on the possibility of holding direct talks on the BOJ succession issue but said the Democrats had decided against doing so.

"Since the discussions (with the prime minister) over a so-called grand coalition were held last year, the whole party has decided not to have such meetings ... I will not directly discuss it with Prime Minister Fukuda."

YUKIO HATOYAMA, SECRETARY-GENERAL OF THE OPPOSITION DEMOCRATIC PARTY, Feb 22, in a news conference:

"The situation is not simple as there are indeed strong opinions on the need for a separation between monetary and fiscal policy."

BUNMEI IBUKI, SECRETARY-GENERAL OF THE RULING LIBERAL DEMOCRATIC PARTY, Feb 22, in a news conference:

"The basic point is that parliament makes a decision after evaluating in an open forum the character and insights (of the candidate)." He earlier denied media reports that the party had taken Muto's name to the Democrats.

KAORU YOSANO, SENIOR MEMBER OF THE LIBERAL DEMOCRATIC PARTY, Feb 22, in a seminar.

"A simple academic would not do. The person (to become the new BOJ governor) must have a network of contacts, knowledge and experience and, at the same time, be able to epitomise the BOJ's role as stipulated in the law."

PRIME MINISTER YASUO FUKUDA, Feb. 20, in parliament:

"It requires sound insight on international finance as well as experience (to become the BOJ governor)."  Continued...

 
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