Japan Backs EFSF Without Buying 20-Year Bonds, Official Says

March 22 (Bloomberg) -- Japan didn’t buy any of the 1.5 billion euros ($1.98 billion) of 20-year bonds sold for the first time by the European Financial Stability Facility this week, a Japanese Finance Ministry official said in Tokyo.

The government instead bought five-year bonds and six-month bills, according to the official, who spoke on condition of anonymity because of the ministry’s policy.

The 440 billion-euro EFSF is helping to finance a second rescue of Greece and smaller aid programs for Ireland and Portugal as part of efforts to stem a sovereign-debt crisis that has threatened the European single currency.

Japan purchased 320 million euros of five-year bonds and 90 million euros of six-month bills, the official said.

To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net