Japan''s Prime Minister Naoto Kan is likely to step down this month, as the Diet is expected to pass two bills that he cites as conditions for his resignation. Executives of the main opposition Liberal Democratic Party and New Komeito agreed on Tuesday to vote for a bill to issue deficit-covering bonds, NHK Radio Japan reported Wednesday. This came after the governing Democratic Party agreed to review a high school tuition waiver program and subsidies for farmers. The opposition parties are also likely to vote for another bill aimed at promoting renewable energy. Kan is said to be preparing to announce his resignation soon after the Diet approves the two bills. He has also made some progress with his pet projects. When reporters asked him on Tuesday if he still intends to resign once the key bills are passed, Kan replied that he will take responsibility for his words. The Democratic Party is considering holding a leadership election around August 28th and a Diet vote to choose Kan''s successor before the current session ends on August 31st. Likely candidates for the election include Finance Minister Yoshihiko Noda, former land minister Sumio Mabuchi and former environment minister Sakihito Ozawa.