Japan's new premier, Naoto Kan, has warned Japan is at 'risk of collapse' under its huge debt pile.
In his first speech since taking office, Kan said Japan needs a financial restructuring or risk a Greece-style crisis.
"Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.
Japan's public debt is twice its gross domestic product following years of heavy borrowing and Kan has made tackling it a top priority amid market concerns about sovereign debt risk.
"It is difficult to continue our fiscal policies by heavily relying on the issuance of government bonds," said Kan.
"Like the confusion in the eurozone triggered by Greece, there is a risk of collapse if we leave the increase of the public debt untouched and then lose the trust of the bond markets," he said.
Kan, who previously held the post of finance minister, did not specify any changes but has in the past advocated increasing Japan's sales tax.
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