Home > United Nations Online Network in Public Administration and Finance (UNPAN)
1. Global
Global
2. Africa
Africa
3. Arab States
Arab States
4. Asia & Pacific
Asia & Pacific
5. Europe
Europe
6. Latin America & Caribbean
Latin America & Caribbean
7. North America
North America
UNPAN Asia & Pacific




Public Administration News  
Share
BOJ's New Lending Scheme May Be Several Tril. Yen in Scope
Source: breitbart.com
Source Date: Wednesday, June 02, 2010
Focus: Knowledge Management in Government, Institution and HR Management
Country: Japan
Created: Jun 07, 2010

The Bank of Japan is considering extending a total of several trillion yen in loans to financial institutions under a new lending program it is thinking of introducing, possibly in July, to help the nation end deflation and ensure a sustainable economic recovery, sources close to the matter said Wednesday. The BOJ is expected to decide the scope of loans and other details of the program at a meeting of its Policy Board on June 14-15, the sources said. BOJ Governor Masaaki Shirakawa and other policymakers decided at their previous policy meeting in May that the BOJ would extend loans to commercial banks for basically one year at an interest rate of around 0.1 percent, the same as the BOJ's key policy rate, with the aim of encouraging banks to lend more to businesses in growth areas.

Through the new lending measure, the BOJ aims to strengthen the foundation of Japan's economic growth as it regards bold fund provisioning for growing industries such as businesses linked to energy and environment conservation as necessary to achieve a full- fledged economic recovery. The BOJ is expected to accept applications from financial institutions for the utilization of the loan program for about one year, and it is likely to enable the loans to be rolled over, the sources said. Shirakawa has said that by making the loan program a temporary measure, the BOJ wants financial institutions to utilize the scheme "as intensively as possible while it is in place."

As for the selection of business areas eligible to receive loans under the new program, the central bank plans to respect the private-sector banks' approaches to lending while focusing on those businesses that the government and business federations' regard as propelling industries, the sources said. Despite recent signs of an economic recovery, the BOJ has been concerned about a fall in the medium- to long-term potential growth rate of Japan's economy due partly to the shrinking of the population and sluggish productivity. Through the new funding measure, the BOJ aims to help cultivate new demand so as to solidify the base of the nation's economic growth.
News Home

 Tag This
 Tell A Friend
 Favorite
del.icio.us digg this Slashdot
Rate:
0 ratings
Views: 120

Comments: 0 Favorited: 0 Bookmarked: 0 Tagged: 0



0 Comments | Login to add comment

Site map | FAQs | Terms and Privacy | Contact Us
Copyright 2008-2010 by UNPAN - United Nations Public Administration Network