Bank of Japan prepares for small business relief
The Governor of the Bank of Japan Haruhiko Kuroda issued a statement concerning new economic relief measures. The Bank is planning to prepare a new support scheme in the near future, focusing on new credit mechanisms for small businesses.
The authorities have revealed a number of projects for affordable credit for the impacted companies. Kuroda stated, that the Bank is researching new methods of encouraging other financial organizations to take part in the schemes.
The BoJ is also working on a new project aimed at refinancing loans extended to small businesses through the state programmes. The Bank is going to cover 0.1% of interest for the commercial banks that promote this lending model.
On April 27 the national bank enhanced the monetary stimulus in order to fight the growing impact of the coronavirus. Japan’s economy is believed to be on the verge of a full-scale recession.
Most BoJ moves up until now were focused on the large enterprises who have a relatively easy access to credit. Small business is under greater pressure and the authorities have been struggling with reaching out efficiently. It seems that now BoJ is going to switch its attention to the smaller companies