Analysts at Pacific Investment Management Co., the world’s biggest bond fund, claim that Japan will repatriate more funds than markets expect as the country needs to finance its reconstruction after the devastating earthquake and tsunami.

The specialists believe that Japan will also be forced to increase borrowing and monetize some part of its debt to fund the rebuilding that, according to the estimates, will require $300 billion.

The forecasts that Japan will issue a large amount of debt in coming years are mostly based on the experience of the Kobe quake in 1995, though now the country’s debt situation seems to be much more complicated, notes Pimco.

The strategists underline that the greenback, the European currency and Japanese yen are currently facing many difficulties, so they advise investors to borrow money in these currencies to invest in the better-performing emerging markets.