BOJ boosts interest-free loans from private financial institutions Fund with 0% interest rate April 28, 5:00

In order to support the difficult economy under the influence of the new coronavirus, the Bank of Japan decided on the 27th that it will make an additional monetary easing to buy JGBs without any cap for the time being. In addition, the Bank of Japan has a policy of creating a new system to boost real-interest-free and unsecured lending, which private financial institutions will start next month as part of the government's economic measures, making it clear that they will do whatever they can.

At the Monetary Policy Meeting on the 27th, the Bank of Japan decided to take additional monetary easing, remove the upper limit of 80 trillion yen per year for the time being in order to supply ample funds to the market at low interest rates, and aggressively buy government bonds. It was

Kuroda said, "I have made it clear that I will buy as much as I need," and made it clear that I will support the economy in every possible way, in conjunction with the government's large-scale economic measures.

In addition, we will significantly expand our cash flow support measures, accept mortgage-related assets as collateral, raise funds to financial institutions, and take steps to spread loans not only to companies but also to individuals.

In addition to these measures, the Bank of Japan will also create a new system to financially support the government's emergency economic measures.

With regard to economic measures, the government will support the funds, and from next month, private financial institutions will be able to make loans with virtually no interest or collateral.

The BOJ has decided to issue a loan to financial institutions at an interest rate of 0% to support this loan.

Government-affiliated financial institutions have already begun financing interest-free and unsecured loans, but it is taking a long time due to a flood of applications.

Governor Kuroda said at a press conference on the 27th, "Some small and large companies have a tighter cash flow than the Lehman Shock of 2008. Whatever a central bank can do, it will do it."

The challenge for the Bank of Japan is to put in place a system that is easy for private-sector financial institutions to use so that the money can be distributed to the companies and individuals who need it as soon as possible.