Tuesday, 15th June 2010
In Events In Japan,
Bank of Japan reveals loan scheme
The Bank of Japan has announced it is to offer a new loan scheme worth $33 billion (£22.3 billion) to try and boost the country's economy and encourage growth.
The money, which is worth around three trillion yen, will be offered to commercial banks who will in turn, hopefully lend the cash to private firms struggling with the ongoing impact of the economic downturn. The money will be offered at a low interest rate to further boost interest.
As well as the downturn, Japan has been hit by deflation and the recession it suffered as a result of the global financial crisis was its worst since the end of the second world war.
Staples of the Japanese economy, such as cars and electrical items, also suffered lacklustre sales throughout the downturn.
In a statement, the bank said that while the nation's economy "shows further signs of moderate recovery", its "most critical challenge" is to raise the economic growth rate and boost productivity.
Written by Kimberley Homer.
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