Japanese central bank takes step to encourage lending

By DPA,

Tokyo : The Japanese central bank Tuesday decided on emergency measures to support Japanese companies hit by the global financial crisis.

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The central bank’s eight-member Policy Board agreed in an extraordinary session on a set of policies aimed at encouraging banks to offer loans to companies facing cash problems as a result of the crisis.

The board also decided to leave the short-term interest rate unchanged at 0.3 percent.

Especially smaller businesses have been struggling to make it through the remaining months of the current fiscal year that ends next March.

Japan’s financial institutions have been hesitant to supply loans in a market situation shaken by company collapses.