By The Financial District

Jul 13, 20211 min

Japan Retreats On Use Of Banks To Force Restos To Observe Liquor Ban

The government said Friday it will retract its plan to ask financial institutions to ensure restaurants follow the ban on serving alcohol during the latest state of emergency, only a day after it put forward the initiative as a way to strengthen its anti-coronavirus response, Kyodo News reported.

Yasutoshi Nishimura, the minister in charge of Japan's coronavirus response, unveiled the controversial policy the previous day, drawing criticism that the government was attempting to use lenders to pressure such establishments.

Chief Cabinet Secretary Katsunobu Kato, who received complaints about Nishimura's remarks from senior members of the ruling Liberal Democratic Party (LDP), told reporters the government no longer intends to seek the support of financial institutions.

Nishimura told him he will retract the policy as it had failed to secure the understanding of the public, Kato said. Earlier Friday, Nishimura told reporters that the government would try to "fix the unfairness" felt between establishments that are earnestly obeying the government's request not to serve alcohol and those that are not. Nishimura's remarks last week drew criticism from the main opposition Constitutional Democratic Party of Japan, which called the measure nothing but a threat to eateries.

"He is merely trying to threaten (the restaurants) and add constraints on them," said Jun Azumi, the CDPJ's Diet affairs chief, said, calling Nishimura's attitude "condescending." He urged Nishimura to "resign immediately before drawing anger from the public."

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