Tokyo, Dec. 15 (Jiji Press)–Tomoko Amaya, the top international finance official at Japan’s Financial Services Agency, has expressed alarm over excessive corporate debt and the overheating of financial markets caused by monetary easing measures around the world.

“Appropriate measures are needed” as economies around the world draw back easing measures they have taken amid the novel coronavirus crisis, Amaya, vice minister for international affairs at the FSA, said in a recent interview.

Governments and central banks around the world have offered financing aid to companies and other measures amid the pandemic.

The policy measures led to money flowing into financial and commodity futures markets, triggering volatile market movements for stocks and commodities. Meanwhile, corporate financing aid led to the survival of companies that would have failed even without the coronavirus crisis.

With the U.S. Federal Reserve tapering monetary easing measures and other countries following suit with their own policy changes, many fear that investors will pull their money out of markets in emerging economies.

“Many emerging countries are expected to be greatly affected,” Amaya said.

Meanwhile, she stressed the importance of “transition finance,” or efforts to support companies in their transitions to decarbonized operations, saying that private sector-led efforts to develop ways to do this are key.

Foreign investors are urging their target companies to decarbonize their entire supply networks, and small businesses that cannot present a transition plan are feared being cut off from supply chains.

Amaya said that creating appropriate plans and “being accepted by investors will be very important” for businesses.