Japan To Reduce Purchases and Aid To Europe's ESPF

A senior official from the Ministry of Finance of Japan said the country will still buy more bonds from the European Financial Stability Fund, but may not keep the same pace of purchases. "I told the chief executive of EFSF, Klaus Regling, we will continue to buy bonds," said the official, however, he added that continuing to buy 20% of them will be difficult.
20% of bond issues of EFSF is the percentage that the country has bought so far. He said Mr. Regling mentioned the issue of creating a special purpose vehicle to buy bonds and raise funds for bank recapitalization, but said that Japan did not make any commitment to the plan.

The source added that the amount of bonus that Japan EFSF purchase depends on the amount of euros that the government has in cash, as well as other factors, such as the yield (return to the investor) of the bonus.