Approaching the end of the fiscal year The issue of how to support corporate financing and avoid economic deteriorationGovernment and Bank of Japan March 17 4:48
The Bank of Japan held a monetary policy meeting ahead of schedule on the 16th, and introduced a system in which private financial institutions actively finance companies whose sales have decreased due to the spread of the new coronavirus infection. As the end of the fiscal year approaches, it is a major issue how to support funding in conjunction with the government's efforts and avoid a sharp economic deterioration.
The Bank of Japan took an unusual response on the 16th to hold a monetary policy meeting ahead of schedule.
The meeting has set up a new framework for the Bank of Japan to finance financial institutions, making it easier for private financial institutions to lend to companies whose sales are declining due to the spread of the new coronavirus. .
At a press conference on Friday, Kuroda said, `` I thought it was necessary to judge the necessary measures as soon as possible in order to ensure the smoothness of corporate finance and the stability of financial markets ahead of the end of the fiscal year. '' .
With regard to corporate financing support, government-affiliated financial institutions such as the Japan Finance Corporation have established substantial interest-free and unsecured financing schemes for small and medium-sized enterprises, and the government as a whole has begun full-scale efforts.
With companies approaching two weeks by the end of the year when they need a lot of money, it is a major issue whether the government and the Bank of Japan can support the cash flow and avoid a sharp economic deterioration.