TOKYO — Finance Minister Kiichi Miyazawa on Monday suggested a global "risk insurance" for foreign loans and a system to help debtor nations, Kyodo News Service reported.
Miyazawa disclosed the plan in a political campaign speech in Nagoya, central Japan, Kyodo said. In the race to succeed Prime Minister Yasuhiro Nakasone in October, Miyazawa is competing with ruling Liberal Democratic Party Secretary General Noboru Takeshita and Party Executive Chairman Shintaro Abe.
Miyazawa said the insurance plan would keep foreign funds flowing to debtor nations, Kyodo reported. He also suggested establishing an international center to promote the conversion of debts into equities in debtor nations.
The center would help private banks sell the securities of debtor countries at discount prices to investors, who then would receive local currencies to buy stocks in firms of those countries, Kyodo said.