Bank of Japan Expands Corporate Financing Support Limit to 1,240 Trillion Won

[Asia Economy Reporter Bu Aeri] The Bank of Japan, Japan's central bank, announced on the 16th that it will expand the corporate financing support limit from the existing 75 trillion yen (846 trillion won) to 110 trillion yen (1,240 trillion won).

The Bank of Japan made this decision while maintaining its large-scale monetary easing policy at the 'June Monetary Policy Meeting' held over two days starting from the 15th.

The limit on corporate financing, such as purchasing corporate bonds issued by large companies or lending funds at 0% interest to financial institutions that provide loans to small and medium-sized enterprises, was increased by nearly 46.6%.

The Bank of Japan also decided to maintain its monetary easing policy, guiding short-term policy rates to minus (-) 0.1% and long-term rates to around 0%.

The Bank of Japan's economic assessment changed from 'deteriorating' in April to 'very severe' this time.

Haruhiko Kuroda, Governor of the Bank of Japan, stated at a press conference on the day, "It depends on how long the impact of the novel coronavirus infection (COVID-19) continues, but if necessary, we are willing to consider additional (monetary) easing measures without hesitation."

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