TOKYO: The Bank of Japan's corporate financing support steps related to the new coronavirus crisis are set to exceed 100 trillion yen, following the enactment on Friday of the government's fiscal 2020 second supplementary budget featuring additional measures against the epidemic.
At an extraordinary monetary policy meeting on May 22, the BOJ adopted a new measure to provide interest-free funds to financial institutions offering no-interest, no-collateral loans to businesses in line with the government's emergency economic stimulus measures.
The BOJ offers 0.1 pct interest to the commercial banks' current account deposits at the central bank, aiming to encourage them to extend loans aggressively.
The total size of the BOJ's financial aid to businesses reached 75 trillion yen, including existing measures to purchase corporate bonds.
In the fiscal 2020 second extra budget, the government increased the scale of no-interest, no-collateral loans by 28 trillion yen. In line with the change, the BOJ's corporate financing aid will also be expanded.
BOJ Governor Haruhiko Kuroda is expected to explain the central bank's coronavirus relief measures at a press conference after its two-day policy-setting meeting from Monday.
At the meeting, the BOJ is expected to keep its monetary policy unchanged, planning to examine the effects of additional monetary easing steps it adopted in March and April.