Japan spends over 3.8 tril. yen to help crisis-hit businesses

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TOKYO, July 18 Kyodo -
The Japanese government spent a total of about 3.83 trillion yen in seven
months through June in extending emergency loans to and buying commercial paper
from private businesses hit by a global financial crisis, according to
government data made available Saturday.
The government effectively declared in its monthly economic report in June that
the nation's economy had bottomed out of the recession, but analysts say
private-sector businesses are still largely dependent on public funds and
assistance.
The data, including those from the Finance Ministry, show that the amount was
spent in a total of 12,800 cases of emergency loans and CP purchases
implemented by three government-backed lenders -- Development Bank of Japan,
Shoko Chukin Bank and Japan Bank for International Cooperation -- as well as by
private lenders.
The DBJ extended emergency loans totaling 1.83 trillion yen to large and
midsize companies and bought 350 billion yen worth of CP, or short-term debt
issued by companies to facilitate operations, between last December and this
June.
The bank's emergency loans swelled to 390 billion yen in June alone, following
140 billion yen in April and 230 billion yen in May, due partly to a large loan
extended to Japan Airlines.
Shoko Chukin Bank, which mainly supports small and medium-sized companies,
offered a total of 840 billion yen in loans.
JBIC, which helps finance Japanese businesses' overseas projects, also extended
810 billion yen in loans.
Meanwhile, private-sector lenders have provided credit guarantees to a total of
596,465 cases of loans worth 11.87 trillion yen taken by small and midsize
companies by the end of June, up 2.68 billion yen from the end of March.
Analysts say there are many businesses maintaining operations on the back of
public assistance because private-sector lenders have become stricter in
providing loans as they are faced with an increasing number of irrecoverable
loans.
==Kyodo
2009-07-18 22:30:24