Japan urges credit crisis action

Japan has joined the calls for co-ordinated action to tackle the credit crisis to be discussed at the G7 summit in Washington on Friday.

Japanese finance minister Fukushiro Nukaga has written to other G7 members calling for an international response.

His British counterpart, Alistair Darling, has also written a letter calling for co-ordinated action.

G7 leaders are expected to approve plans for greater openness and transparency from banks.

But some members would like to discuss further action, such as agreement on the use of public money to fund mortgages or bail-out banks.

"It is important to think about how best to stabilise the global economy and financial markets," Mr Nukaga said.

'Big bill'

Dominique Strauss-Kahn, head of the International Monetary Fund (IMF), has also called for co-ordinated action.

The IMF's former chief economist, Kenneth Rogoff, has suggested that could involve governments taking on mortgage debt.

"I think we're going to see some form of government intervention into the mortgage market where the government buys up a lot of mortgages directly or indirectly," he told the BBC.

"I think ultimately there's going to be a big bill for the taxpayer."

The G7 members are the US, Britain, France, Germany, Italy, Canada and Japan.