Tokyo plays down prospect of bank boost

JAPAN - The Japanese government yesterday played down speculation that it was preparing a large capital injection into the wobbly banking system before the end of next month, when a government blanket guarantee on bank deposits will be lifted.

Yasuo Fukuda, chief cabinet secretary, said that late-night talks held between Masaru Hayami, Bank of Japan governor, and Junichiro Koizumi, the prime minister, on Tuesday did not focus on banking. "The talks were about the financial situation in general,"

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