Tuesday, 14th June 2011
In Business In Japan,
Bank of Japan launches 500 billion yen investment
The Bank of Japan (BOJ) has unveiled a huge 500 billion yen (£3.8 billion) investment plan to support business in the country.
Banks across the country will be able to use this cash to help Japan's small businesses through loans which are not tied to real estate as collateral, reports BBC News.
The BOJ - which also announced that interest rates in the Asian country are to remain at 0.1 per cent - is beginning the investment to help the country recover from the devastating earthquake and tsunami which hit on March 11th.
Masamichi Adachi, who works at JP Morgan Securities, said that the bank is showing support for the country's economy.
"The BOJ is … sending a message to the public that it is doing its part to enhance growth and beat deflation by boosting loans for growth sectors," he said.
According to the bank, the economy of Japan has started to recover, noting it is "under downward pressure, mainly on output, due to the quake's impact but showing some signs of picking up".
Written by Kimberley Homer
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