Japan to Let Public-Private Fund Help Pandemic-Hit Midsize Firms
Newsfrom JapanPolitics Economy
Tokyo, April 24 (Jiji Press)--The Japanese government is planning to make use of a public-private investment fund to support the management of midsize companies suffering from the spreading novel coronavirus, informed sources said Friday.
Services provides such as operators of restaurants and hotels across the country see their earnings quickly evaporating due to a sharp fall in the number of customers caused by stay-at-home requests by authorities and travel bans around the globe. Manufacturers as well are increasingly hit hard by the pandemic.
With no end in sight to the virus crisis, the central government finds it necessary to get involved in supporting regional economies by creating a relief system for cash-squeezed businesses using public funds, the sources said.
According to the sources, under consideration are proposals to have Regional Economy Vitalization Corp. of Japan, a public-private fund designed to back medium-sized businesses, beef up struggling companies' capital or purchase their accounts receivable through sub-funds it has set up with regional financial institutions chiefly for promoting postdisaster reconstruction efforts.
In regions not covered by existing funds, REVIC will establish new ones with local lenders, the sources added.
[Copyright The Jiji Press, Ltd.]