Tokyo: Japanese Prime Minister Naoto Kan on Sunday rejected securitisation of national assets, saying that the proposal by challenger Ichiro Ozawa wouldn't do more than bond sales to boost government revenue.
"It would be difficult for securitisation to improve on bonds" as it might cost higher interest rates, Kan said on the Sunday Debate program on NHK television.
"Even if we could securitise assets, I don't know if anyone would buy."
Ozawa, seeking leadership of the ruling Democratic Party of Japan, said last week the government could securitise about 200 trillion yen (Dh8.8 trillion) of national assets to help fund policies. Kan, a former finance minister, has pledged to cap bond sales that have given Japan the world's biggest public debt.
Threat
Japan's economy is under threat from the yen's advance to a 15-year high against the dollar and slowing export growth, according to economists including Junko Nishioka at RBS Securities Japan Ltd in Tokyo.
The economy grew more than double the initial government estimate last quarter, economists said after a report showed companies cut spending at the slowest pace since 2007 as a result of overseas demand.
Ozawa, head of the DPJ's largest faction, has pledged to double a monthly childcare allowance and extend the period of subsidies for energy-efficient appliances.
Ozawa criticised Kan for urging ministers to cut budget requests by 10 per cent, saying he was following the advice of bureaucrats in making decisions.
