Tuesday, April 12, 2011

Japan will need more than 200,000 million to rebuild the country

Jairo Mejia. Tokyo (EFE) .- The Government and Japanese companies have begun to refine the details of a plan of reconstruction after the earthquake, which may need more than 200,000 million euros and will begin to take shape with a budget of 33,000 million. The Japanese government wants to pass as soon as possible an initial budget of 4 trillion yen (about 33,000 million euros) to begin a massive rebuilding in the northeast coast of Japan after the earthquake of 9 degrees on the Richter scale occurred just makes a month.

Priorities will work to clear debris from a coastal area covering more than 600 kilometers, the first aid to normalize the lives of refugees, up about 70,000 homes and rebuild a local economy in serious danger of collapse. To further define a reconstruction program that will reach a record level, the Japanese government today created a board of experts including university professors, businessmen and architects such as Tadao Ando to around June, to submit proposals that range from urban planning to use .

Some politicians believe that the first phase of reconstruction will also need about three additional budgets to reach a total of ten billion yen (81.789 million euros). For Japan, the devastating tsunami struck in a particularly sensitive time when the economy began to recover and struggled to reduce the potential danger which means its large public debt, which doubled in value to the Gross Domestic Product (GDP).

The difficult problem of preparing a new budget without issuing debt will force change several items of expenditure such as pension contributions, and rethink some of the policies of the Government of the Democratic Party of Naoto Kan. To help finance the businesses that millionaires need funds to rebuild their businesses, the Bank of Japan (BOJ) on Thursday approved an emergency loan program low interest amounting to one trillion yen (8.178 million euros).

Besides the SMEs of great importance in the most affected provinces (Fukushima, Miyagi and Iwate), Nipponese majors are working to set up plants in those regions as soon as possible. Nissan, Sony and Kirin have had to stop operations in some plants by application of the earthquake and some do not know when they will reopen, another concern for workers in the area.

Besides the direct damage to its facilities, Japanese companies face a year of power shortages by the slowdown in some nuclear power plants and other in northeastern Japan. The outage problems require to slow down a good number of production lines throughout the country, what are the dangers from the plant in Fukushima, which could make consumers associate with Japanese products radioactive danger.

Some exporters producing in regions near the center of Fukushima are conducting radiation checks to their products to remove doubts and avoid the fears of consumers. At the same time, the Government will review the levels of radioactivity in the ports of Japan to avoid being rejected at foreign ports.

The government has promised to pay compensation through a public insurance to exporters who are affected by increased levels of radiation or damaging rumors sales. Fumes from the central Fukushima also hurt fishermen, farmers and ranchers in several provinces in central Japan, so that the Government is likely to have to spend a lot of funds for a long time to recover from its worst disaster since the Second War World.

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