A senior Japanese government official said Thursday, Jan 19, that Japan is prepared to support efforts by European countries to stabilize the markets, including by lending to the International Monetary Fund, The Wall Street Journal reported.

"Japan is prepared to support European efforts to stabilize the market, including through lending to the IMF, based on strong efforts by European countries," and in collaboration with the G-20 and other countries, the official told reporters.

The comments come after euro zone and IMF officials said Wednesday the fund has identified a need for an extra $500 billion to $600 billion in resources to help fight the European debt crisis, with countries such as China and Japan expected to contribute.

Regarding the amount of funding that may be provided, the official said that the $500 billion to $600 billion figure cited by the IMF originated with the Washington-based fund, and said discussions should now begin on what kind of funding increases are needed.