G7 to debate US, Europe debt woes: Japan govt source

G7 to debate US, Europe debt woes: Japan govt source

TOKYO: Group of Seven finance leaders will discuss the US sovereign rating downgrade and Europe's debt woes, and may issue a statement after their conference call, a Japanese government source said on Sunday.

Japanese deputy finance minister Fumihiko Igarashi did not confirm that a call would take place but said G7 nations were making arrangements for one, telling a television programme on Sunday: "We're not at a stage where we can announce (there will be a call)."

"In the currency market, surprise is important so I don't think it's a good idea to announce anything in advance," he said.

Igarashi also warned markets that Tokyo will intervene in the currency market again if it sees any "unnatural" moves that may be driven by speculators.

"We're not done with intervention yet," he said. On US economic and debt woes, Igarashi said Japan was closely watching US efforts toward fiscal reconstruction.

"We're watching developments with grave concern, as this could potentially trigger a global financial crisis," he said. 

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