ID :
208385
Tue, 09/20/2011 - 19:03
Auther :
Shortlink :
https://oananews.org//node/208385
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Japan to aid firms under impact from stronger yen
TOKYO, Sept. 20 Kyodo -
The Japanese government stepped up its effort Tuesday to make the country's economy more resilient despite the recent sharp rise of the yen in the currency market, which has heaped additional woes on domestic manufacturers, already hurt by the March earthquake and tsunami.
The government unveiled its midterm report on a set of policies to improve the situation after a meeting of relevant ministers. Steps include financial assistance to smaller businesses and measures to encourage major companies to remain in Japan at a time when the stronger yen makes it more likely they will accelerate their shift abroad in pursuit of cheaper labor costs.
The emergency steps are expected to be financed by a planned third extra budget for fiscal 2011, most of which is to be devoted to funding reconstruction from the March 11 disaster.
The government also agreed to aim at submitting the draft budget to the Diet in the second half of October, along with a bill that would enable it to raise some taxes and secure funds to service envisaged special government bonds for reconstruction.
''We are focusing on transforming the structure of the economy in order to make it less dependent on (the yen's) foreign exchange (rates),'' economic and fiscal policy minister Motohisa Furukawa told reporters after the meeting.
The report said the government wants the Bank of Japan to ''underpin the economy with appropriate and decisive monetary policy,'' suggesting the central bank should further ease monetary conditions in the country to stimulate growth.
The yen strengthened to a postwar record against the U.S. dollar in August, despite Tokyo's intervention to curb its strength earlier in the month, alarming and pushing the government to consider necessary countermeasures.
The set of policies would see the government expand the subsidy program to encourage companies to build new factories and other facilities in Japan, and financially support small and medium-sized companies by extending credit guarantees for bank loans to smaller businesses and by offering cheap loans to them through state-backed financial institutions.
The report also mentioned some employment-boosting measures, including easing conditions for companies to apply for a government subsidy program and implementing more job training for the unemployed.
To make the best use of the rising yen, the government will encourage large companies to seek an interest in developing overseas energy resources.
The government will also introduce numerical goals to measure its achievement under the policies, the report said.
Details of the emergency measures will be finalized in discussions with the ruling Democratic Party of Japan before the government submits the draft budget for Diet deliberation.
2011-09-20 23:59:28
The Japanese government stepped up its effort Tuesday to make the country's economy more resilient despite the recent sharp rise of the yen in the currency market, which has heaped additional woes on domestic manufacturers, already hurt by the March earthquake and tsunami.
The government unveiled its midterm report on a set of policies to improve the situation after a meeting of relevant ministers. Steps include financial assistance to smaller businesses and measures to encourage major companies to remain in Japan at a time when the stronger yen makes it more likely they will accelerate their shift abroad in pursuit of cheaper labor costs.
The emergency steps are expected to be financed by a planned third extra budget for fiscal 2011, most of which is to be devoted to funding reconstruction from the March 11 disaster.
The government also agreed to aim at submitting the draft budget to the Diet in the second half of October, along with a bill that would enable it to raise some taxes and secure funds to service envisaged special government bonds for reconstruction.
''We are focusing on transforming the structure of the economy in order to make it less dependent on (the yen's) foreign exchange (rates),'' economic and fiscal policy minister Motohisa Furukawa told reporters after the meeting.
The report said the government wants the Bank of Japan to ''underpin the economy with appropriate and decisive monetary policy,'' suggesting the central bank should further ease monetary conditions in the country to stimulate growth.
The yen strengthened to a postwar record against the U.S. dollar in August, despite Tokyo's intervention to curb its strength earlier in the month, alarming and pushing the government to consider necessary countermeasures.
The set of policies would see the government expand the subsidy program to encourage companies to build new factories and other facilities in Japan, and financially support small and medium-sized companies by extending credit guarantees for bank loans to smaller businesses and by offering cheap loans to them through state-backed financial institutions.
The report also mentioned some employment-boosting measures, including easing conditions for companies to apply for a government subsidy program and implementing more job training for the unemployed.
To make the best use of the rising yen, the government will encourage large companies to seek an interest in developing overseas energy resources.
The government will also introduce numerical goals to measure its achievement under the policies, the report said.
Details of the emergency measures will be finalized in discussions with the ruling Democratic Party of Japan before the government submits the draft budget for Diet deliberation.
2011-09-20 23:59:28
