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Article example - Japan Buys More of Euro Bailot Bond
Pages 3 (753 words)
Date Japan Buys More of Euro Bailout Bond This newspaper article is about Japan’s move to buy bonds from a European bailout fund (Nakamichi , par 1). However, the article stated that Tokyo will reduce by 10 percent its purchase of the new bonds issued by the European Financial Stability Facility (EFSF)…
Extract of sample
Unlike Japan, other countries are not inclined to buy the European bonds because of the increasing debt problems which confront Europe. Even China which bought the bonds previously has not shown any intention of purchasing additional bonds. The financial crisis in Europe has made the yen stronger, making Japanese products less competitive than other products in the world. Because of this, the Japanese government has intervened in the currency market to weaken the yen, which was opposed by the European countries. It is not clear though whether this opposition by European countries triggered the reduction in the purchase by Japan of the EFSF bonds. The Japanese Finance Ministry defends its position by saying that the reduction in the purchase is based on the euro “liquidity” in its reserves and the conditions of the EFSF securities (Nakamichi , par 10). As a background information, the European Financial Stability Fund was set up in May 2010 with $625M. It was set up “to bail out Greece to keep the turmoil caused by its debt from spreading to the euro-zone’s weaker members” (The New York Times , par 1). ...
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