Japan State Lenders to Boost Aid to Restaurants, Hotels

Politics

Tokyo, March 23 (Jiji Press)--The Japanese government on Tuesday decided to allow state-backed lenders to extend loans independently to operators of restaurants and hotels hit hard by the new coronavirus crisis.

The step was included in new financial support measures for the restaurant and hotel industries that were drawn up at the day's meeting of related cabinet ministers to discuss emergency support for nonregular workers.

"Amid prolonged impacts of the pandemic, the government will work closely with businesses in need and take finely tuned response in an integrated manner," Prime Minister Yoshihide Suga said at the meeting, indicating the government's resolve to work on the maintenance of jobs.

Specifically, the Development Bank of Japan and Shoko Chukin Bank will directly offer subordinated loans, which are close to capital, to restaurant or hotel operators, which employ many nonregular workers, at an interest rate of around one pct for the initial three years, lower than several pct in some cases at present.

Currently, these government-affiliated lenders can supply such loans only in tandem with commercial banks in principle.

[Copyright The Jiji Press, Ltd.]

Jiji Press