Tax & Spend
Japan Needs Wake-Up Call on Debt, Government Advisor Warns
- Nakazora says she wants credit rating firms to warn of cuts
- Fiscal policy has turned into popularity contest, advisor says
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Japan could use a wake-up call over its mountain of debt through credit rating firms warning of the potential for cuts to sovereign bond ratings, according to a government advisor.
“Recent fiscal policy has turned into a popularity contest,” said Mana Nakazora, a credit analyst on an economic panel advising Prime Minister Shigeru Ishiba. “I’d rather that credit rating firms say that they’ll cut ratings” to warn authorities of risk, she said in an interview with Bloomberg Monday.