Japan Central Bank In $279 Bn Loan Boost For Small Firms

Japan's central bank on Friday offered hundreds of billions of dollars in additional lending to help small firms in the world's third-largest economy struggling with the economic devastation wrought by coronavirus.

The Bank of Japan expanded its loan programme by 30 trillion yen ($279 billion), bringing its total package of financial assistance to small and medium-sized firms to 75 trillion yen.

At an unscheduled meeting held to discuss the economic ramifications of the pandemic, the bank also extended the duration of the programme by six months until March 2021.

Japan was struggling from the effects of natural disasters and a hike in consumption tax even before the pandemic crippled the global economy.

Data published on Monday showed Japan had dived into its first recession since 2015 in the first quarter, with most economists warning the worst was still to come.

Adding to the Bank of Japan's headaches, the country slipped back into deflation for the first time in more than three years, with prices falling 0.2 percent in April, according to data released earlier Friday.

The central bank aims to keep the inflation rate at around two percent but did not take any monetary policy action at Friday's exceptional meeting.

Last month, the BoJ fired off its monetary policy bazooka, offering unlimited purchases of government bonds and more than doubling its upper limit of corporate bond buys.

It pledged again to maintain financial stability, "closely monitor" the impact of the coronavirus and vowed it will "not hesitate to take additional easing measures if necessary".

Copyright AFP. All rights reserved.

RECENT NEWS

How Hedge Funds Differ From Mutual Funds

In a world where successful investment plays a significant role in one's financial success, it becomes paramount to unde... Read more

Basics Of Hedge Funds And Their Strategies

In the realm of finance, hedge funds often make tantalizing headlines. With their high rewards and greater risks, they'r... Read more

The Role Of Hedge Funds In Financial Markets

Over the years, the prominence of hedge funds within the financial market landscape has grown exponentially. The role of... Read more

Revolutionizing Finance: A Deep Dive Into The Role Of Machine Learning In Hedge Fund Management

The financial landscape has undergone radical transformations over the years, shifting from traditional models of financ... Read more

Emerging Cybersecurity And Compliance Trends In The Hedge Fund Industry

The hedge fund industry, a central force in the global investment landscape, faces both the promise and peril of ever-ad... Read more

Understanding Key Compliance Challenges For Hedge Funds In The Post-Pandemic Era

As societies grapple with the aftermath of a globally destructive pandemic, exploring the intricate operations of hedge ... Read more