Unclear how long credit crunch will last: Japan MOF

LONDON (Reuters) - Japan's top financial diplomat said on Thursday he did not know how long the credit crunch would last but that the impact on the real economy could be longer-lasting than the market turmoil itself.

"How long it's going to last I cannot answer, but the market is adjusting itself to the situation. From a period of very calm economy which lasted for the last 3 or 4 years, it's a natural adjustment," Naoyuki Shinohara, vice finance minister for international affairs, told journalists in London.

"The impact on the real economy may take longer than the turmoil itself...We need to be closely watching the situation. We will take action if necessary."

(Reporting by Natsuko Waki and Toni Vorobyova; Editing by Gerrard Raven)