TOKYO: The Bank of Japan is considering doubling its financial support for small businesses struggling amid the novel coronavirus crisis from the current 30 trillion yen, Jiji Press learned Tuesday.

The central bank's aid related to the epidemic will total some 100 trillion yen. The BOJ will act in lockstep with the government to support small firms facing the fallout from the pandemic.

The move follows the government's plan to expand interest-free, unsecured loans under its second supplementary budget plan for fiscal 2020, which was adopted on Wednesday last week.

The BOJ is expected to decide on the additional aid at its next monetary policy meeting on June 15-16 at the earliest, informed sources said.

At its extraordinary policy meeting on May 22, the bank adopted small business support measures worth 30 trillion yen. Combined with the expanded purchases of commercial paper and corporate bonds, as well as new money market operations, the total size of the BOJ's corporate support steps reached 75 trillion yen.

Under the financing aid, the BOJ will provide zero pct loans to commercial banks that extend interest-free, unsecured lending to client companies under the government's coronavirus relief package, the sources said.

The BOJ will give 0.1 pct interest to the commercial banks' current account deposits at the central bank to encourage them to step up lending, according to the sources.

JIJI Press