TOKYO: The Japanese government on Tuesday compiled its second batch of emergency measures to cope with the new coronavirus outbreak that features some 1.6 trillion yen in financial measures through state-backed lenders, including a special loan program for small firms and microenterprises.

The package, adopted at a meeting of the government's headquarters in response to the viral outbreak, also includes the use of over 430 billion yen in government funds, including 270 billion yen fiscal 2019 reserve funds, for such steps as new subsidies related to emergency school closures.

"In addition to aiming for the early end of the outbreak, we must make utmost efforts by giving top priority to maintaining employment and business operations for the time being," Prime Minister Shinzo Abe said at the meeting.

Some 500 billion yen is set to be earmarked for the special lending program, which will provide effectively interest-free loans to self-employed people and freelance workers, as well as small companies facing steep drops in sales. Meanwhile, all business owners will become eligible for employment adjustment subsidies.

For the tourism industry, the government will designate the period until the end of the outbreak as a "run-up period" for reversing the decline in business, supporting companies in adopting cashless payment systems and multilingual services, and making facilities barrier-free.

The package includes subsidies for companies with workers being forced to take leave for taking care of their children in line with the government-requested emergency school closures.

Firms with paid leave schemes will be given up to 8,330 yen per day for each worker who misses work, while self-employed people, as well as freelance workers who clear certain conditions, will receive a uniform 4,100 yen per day.

In addition, up to 200,000 yen in loans will be extended to households, including self-employed people, affected by the school closures as a special measure under the livelihood welfare fund loan system.

Also in line with the closures, the government will ask schools to refund school lunch fees to households, and it will cover the losses from the refunds. The government will shoulder all additional costs at after-school child care centers that accept children from the morning during the school closures.

The government late last month asked all elementary, junior high and high schools, and special-needs schools in the nation to close until the start of the regular spring break, in a bid to stem the spread of the coronavirus.

The second emergency package also includes one-million-yen aid per company and the promotion of free consulting services by experts, to popularize remote working.

The government will seek to prevent the spread of the coronavirus among infants, elderly people and people with disabilities by offering financial aid to nurseries and care facilities for purchasing disinfectants.

It will promote the introduction of services allowing people with health concerns to consult doctors remotely. It will also boost the testing capacity for the COVID-19 new coronavirus to up to 7,000 cases per day by the end of March, providing aid to cover test expenses.

The package includes measures against panic buying of goods, including banning resales. In a related move, Abe's cabinet decided on Tuesday a law revision to ban resales of face masks at prices higher than purchase costs.

The government will also deal with citizens' difficulties paying national taxes and social security premiums flexibly.
JIJI Press