Hagiuda Hints at JGB Redemption Rule Review for Defense Spending

Politics

Taipei, Dec. 11 (Jiji Press)--Japanese ruling party executive Koichi Hagiuda said Sunday that reviewing rules on the redemption of Japanese government bonds is "worth considering" as a way to raise funds to cover a planned hike in defense spending.

His remark, made during a speech in Taipei, suggested that part of JGB redemption costs could be used to cover defense outlays by reviewing the rules under which JGBs are redeemed over 60 years while the government issues refinancing bonds until the redemption is completed.

At a press conference in Tokyo Saturday, Japanese Prime Minister Fumio Kishida ruled out the possibility of the government issuing bonds to cover defense spending after fiscal 2027.

In talks with reporters in the northern Taiwan city of Hsinchu after the Taipei speech, Hagiuda, chairman of the Liberal Democratic Party's Policy Research Council, said that issuing JGBs until Japan's defense spending reaches 2 pct of its gross domestic product in fiscal 2027 could be an option.

On Kishida's remark at the press conference, Hagiuda said the prime minister seems to have talked about the situation after defense spending has reached 2 pct. Hagiuda added that he thinks Kishida wants to strengthen Japan's defense capabilities without excluding the option of issuing JGBs over the next five years.

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Jiji Press