BOJ to lend to financial institutions Corporate support for new virus impact March 20 5:28
A new loan from the Bank of Japan will begin this month on 25 March to support businesses affected by the spread of the new coronavirus through private financial institutions. The aim is for the BOJ to provide funds to banks and shinkin banks at low interest rates, leading to active lending.
The new system was introduced by the Bank of Japan at a monetary policy meeting on 16th of this month. The BOJ will lend aggressive financing to private financial institutions that have provided loans to companies whose sales have been declining due to the spread of the new coronavirus, at a low interest rate of 0%.
The Bank of Japan plans to start lending funds on the 25th of this month under the new system, and has selected 18 financial institutions such as major banks, regional banks, and shinkin banks as its first lending destination.
As the end of the fiscal year, which requires a lot of funding, is approaching, we aim to support financially difficult companies together with government-affiliated financial institutions, and we plan to increase the number of financial institutions we will lend to in the future.