BOJ Introduces New Fund Supply Measure
Tokyo, May 22 (Jiji Press)--The Bank of Japan on Friday introduced a new fund supply measure intended to aid the finances of small and midsize firms struggling with the fallout from the coronavirus pandemic.
Starting next month, the central bank will provide funds worth about 30 trillion yen under the new measure, bringing the total size of its corporate financing support steps to 75 trillion yen.
These measures will remain in place through the end of March next year. Existing steps include the BOJ's expanded purchases of commercial paper and corporate bonds.
Under the new measure, the BOJ will provide zero pct loans to commercial banks that extend interest-free lending to clients under the government's coronavirus relief package.
These banks will be given 0.1 pct interest on their current account deposits at the BOJ in proportion to amounts of interest-free loans they receive from the central bank.
[Copyright The Jiji Press, Ltd.]