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Japan to provide up to $4.3 billion to small firms
Tue, May 26, 2009
Reuters

TOKYO, May 26 (Reuters) - Japanese Finance Minister Kaoru Yosano said on Tuesday that a government-affiliated bank would provide around US$3 billion ($4.3 billion) in loans to small Japanese firms to help them raise cash in the U.S. currency.

The measure, which will be in place until the end of March 2010, adds to a series of government steps to support corporate fundraising amid tight credit markets worldwide.

The Japan Bank for International Cooperation (JBIC), the international wing of state-owned Japan Finance Corp, will offer five-year loans to overseas subsidiaries of small Japanese firms in need of cash.

JBIC has been providing loans to exporters dealing in emerging economies and big firms operating in developing countries since late last year to help them secure dollar funding.

The government has also taken various steps to help companies raise yen cash, including offering 30 trillion yen ($458.8 billion) to guarantee loans to small firms and setting up a 20 trillion yen loan facility via government-affiliated banks.

(Reporting by Hideyuki Sano; Editing by Hugh Lawson)

 

 
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