BANK OF JAPAN BACKS SMALL BUSINESSES BATTLING PANDEMIC

The Bank of Japan (BOJ) vowed on Friday, May 22, 2020, to provide some 30 trillion yen ($280 billion) to banks for financing small and medium-size businesses battling economic hardships brought on by the COVID-19 pandemic.

In a story for the Associated Press (AP) written by Yuri Kageyama, BOJ said the assistance will start in June, with the ban offering zero-interest and unsecured loans on top of earlier measures, such as 20 trillion yen ($187 billion) for purchasing corporate bonds and commercial papers. Kageyama said the bank also announced 25 trillion yen ($234 billion) financing for private debt.

The world’s third-largest economy has sunk into recession, battling stagnant consumption, dwindled tourism and plunging exports.

Central banks around the world, including the US Federal Reserve, have been making similar moves. BOJ’s policy board decided unanimously to continue all measures through March next year. #COVID19