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19 March 2011 ~ Comments Off

Japan plans up to $127 billion in lending after quake

The Japanese government plans to dedicate up to 10 trillion yen ($127 billion) in crisis lending to businesses to help them finance day-to-day operations and repair damage from last week’s deadly earthquake and tsunami, the Nikkei newspaper reported on Saturday.

The government can provide special financing in the form of low-interest loans or interest payment subsidies backed by public funds when a natural disaster or other event triggers major economic instability, the Nikkei said.

The newspaper, without citing any sources, said that the government was considering allocating several trillion yen and up to 10 trillion yen to the scheme. Funds needed to support the scheme would be set aside in an emergency budget. (Reuters)

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