KARUNA SHINSHO, ASIA TONIGHT: After months of being criticized for political missteps, Japanese prime minister Yoshiro Mori is calling it quits. He says he will step down so that Japan can tackle pressing problems, in particular the sluggish economy. But little is expected from a new leader. Peter Hadfield explains.</s>PETER HADFIELD, CNN CORRESPONDENT (voice-over): Prime Minister Mori said he had to resign to restore public trust in politics and to deal with a mountain of issues at home and abroad. The problems of the outgoing prime minister have certainly been a distraction as Japan hurtles towards deflation and yet another economic recession. Mori has become famous for his verbal gaffes, and his public approval rating has slumped to less than 10 percent. But his successor may not do much better. This man, Ryutaro Hashimoto, now looks the most likely to succeed him in a leadership race later this month. Hashimoto is a former prime minister who was responsible for tightening monetary policy three years ago. Now the emphasis is on loosening the purse strings and trying to rid Japan's system of bad loans worth billions of dollars. A recovery plan announced today would force banks to write off bad loans to companies that are almost bankrupt within two years. The government would also buy up unwanted shares owned by the banks. There are around half a trillion dollars worth of these, a throwback to the days when banks owned a chunk of each company they did business with. Investors like the plan. The problem is, the government hasn't announced any timetable, and a new administration under Hashimoto or anyone else may not have the nerve to see it through, especially with a parliamentary upper house election due in July. Calling in bad loans would send many companies into bankruptcy and would increase unemployment. It's the kind of medicine successive governments have been reluctant to swallow over the last 10 years. That's especially true with an election looming. Analysts say the government won't want to go to the polls with bankruptcies and unemployment rising. Peter Hadfield, CNN, Tokyo.
Japanese Prime Minister Mori To Call It Quits