IMF warns Japan on threat of debt

Tokyo: The International Monetary Fund warned in a new report that market concerns over fiscal sustainability could trigger a “sudden spike” in Japanese government bond yields that could quickly render the nation’s debt unsustainable as well as shake the global economy.

The fund’s Japan Sustainability Report, released on Wednesday, was a signal to Tokyo policy makers that the international community is already worried about fallouts from Japan’s potential fiscal problems, after debt problems in some European economies evolved into a Continent-wide crisis.

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The Wall Street Journal