Enactment of the Amended Financial Strengthening Act Today Supporting companies affected by Corona 6:34, August 14
The revised Financial Function Enhancement Law came into effect on March 14 to facilitate the injection of public funds into financial institutions. The FSA wants to support the financial base of financial institutions and to support companies affected by the new coronavirus.
When financial institutions apply to invest public funds, it is essential that they clarify their management responsibilities and indicate future profit targets.
Under the revised Financial Enhancement Act, which came into force on the 14th, if the country determines that it has been affected by the new coronavirus, it will not be responsible and will not set a deadline for repayment of public funds.
In addition, the deadline for application by financial institutions has been extended by 4 years from March 2026, and the limit for public funds has been increased from 12 trillion yen to 15 trillion yen.
The FSA has urged financial institutions to proactively respond to lending and repayment offers from small and medium-sized enterprises that face severe cash flow due to the spread of infection.
If the impact of the spread of infection continues for a long time, it will be necessary to support the rebuilding of SMEs' businesses, so the FSA would like to support the financial base of financial institutions and support the movement of support.