Tokyo - Japanese Finance Minister Shoichi Nakagawa on Tuesday announced a series of government plans to stabilize the financial markets, including the use of public money to help regional banks.

Japan's initiatives also include freezing sales of government-held stocks, extending a safety net for life insurance companies and relaxing buybacks for companies of their own shares.

Nakagawa unveiled the plans after the United States and European countries introduced their own emergency measures to fight the a global financial crisis that was sparked by losses related to US subprime mortgages and has caused world stock markets to plummet and credit to dry up.

The minister said he hopes to extend a law that allows the government to inject public funds into regional banks and other financial institutions.

The law, which expired in March, would especially help small to medium-sized companies secure capital.

The Japanese government was also expected to continue funding life insurance policyholders at times of company failures beyond March 2009, an expiration date for the public aid.

The move came after a medium-sized insurance firm, Yamato Life Insurance Co, became the first Japanese financial firm to file for bankruptcy protection last week because of losses linked to the global financial crisis.

The government also on Tuesday eased regulations on companies buying their own shares and required stock exchanges to disclose more information on the short selling of stocks.

The government and the ruling coalition were expected to soon map out an additional economic stimulus package. (dpa)