BOJ to Scale Back Financing Support for Large Firms

Politics

Tokyo, Dec. 17 (Jiji Press)--The Bank of Japan said Friday that it will scale back COVID-19-related financing support for large companies as their financial conditions have improved.

The central bank said it will complete its additional purchases of commercial paper and corporate bonds at the end of March next year as scheduled.

"With regard to financial conditions surrounding large firms, issuance conditions for CP and corporate bonds have been favorable," the BOJ said in a statement after a two-day monetary policy meeting.

For smaller companies, the BOJ will extend its financing support by six months until the end of September next year. "Their financial positions have been on an improving trend on the whole, but weakness has remained in some segments, such as the face-to-face services industry," it said.

The BOJ kept its massive monetary easing policy unchanged. It will keep its short-term policy interest rate at minus 0.1 pct and guide 10-year government bond yields around zero pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press