Japan eyes fresh stimulus plan worth over $929 billion to battle pandemic – Nikkei

FILE PHOTO: A man wearing a protective face mask, takes a photo with his mobile phone at noon, at Shibuya Crossing, during the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, March 31, 2020. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) – Japan is considering a fresh stimulus package worth over $929 billion (£764 billion) that will consist mostly of financial aid programmes for companies hit by the coronavirus pandemic, the Nikkei newspaper said on Monday.

The package, to be funded by a second extra budget for the current fiscal year beginning in April, would follow a record $1.1 trillion spending plan deployed last month to cushion the economic blow from the pandemic.

The second extra budget, worth 100 trillion yen ($929.45 billion), will include 60 trillion yen for expanding loan programmes that state-affiliated and private financial institutions offer to firms hit by virus, the paper said.

Another 27 trillion yen will be set aside for other financial aid programmes, including 15 trillion yen for a new programme to inject capital into ailing firms, it said.

The government is expected to approve the budget, which will also include subsidies to help companies pay rent and wages as they close businesses, at a cabinet meeting on Wednesday.

Reporting by Leika Kihara; Editing by Sonya Hepinstall

Source Article

Next Post

Lufthansa to resume flights to 20 destinations from mid-June

FILE PHOTO: Aircraft of the German carrier Lufthansa are parked on the tarmac, as the spread of the coronavirus disease (COVID-19) continues, at the airport in Frankfurt, Germany March 24, 2020. REUTERS/Ralph Orlowski FRANKFURT/BERLIN (Reuters) – Lufthansa (LHAG.DE), which is in talks with the German government over a 9 billion […]