Japan pledges financial reform after overcoming epidemic crisis

Japan has pledged to return to financial reform once the corona crisis is completely over.

Japanese Prime Minister "Shinzo Abe" said in parliament on Monday that the country will resume financial reform once the economy overcomes the blow caused by the Corona virus, despite some lawmakers' calls to continuously spend with money printed by the central bank, according to Reuters. .

The Japanese government pledged to spend 2.2 trillion US dollars in two stimulus packages to ease the economic blow following the epidemic, while the central bank pledged to purchase unlimited amounts of bonds to reduce borrowing costs at zero.

"The Japanese economy is in crisis, so the priority now is to use all available means to put it on a path to recovery," Abe said.

He continued: "By achieving economic growth, Japan can restore financial strength, but this does not mean that the country can increase debt indefinitely."

 He explained that the government will resume its efforts to improve the country's financial situation once the economy stabilizes.

Abe's comments come amid calls by some lawmakers for Japan to shore up the economy by printing unlimited funds to finance government spending - a concept called "modern monetary theory" put forward by some American academics.

The Japanese economy turned into a recession amid expectations of a contraction in excess of 20 percent in the period from April to June, as closures to contain the epidemic disrupted consumption and business.