Bank of Japan to pump nearly $16-billion into economy through lending scheme GlobeBusiness
, a sign that the programme is helping to channel money to cash-strapped firms suffering from the pandemic.
The three-month loans will be delivered to financial institutions on Wednesday. The total balance of money pumped out under the scheme stood at 14.4 trillion yen, the data showed.The BOJ created the scheme in March as part of steps to ease corporate funding strains, under which it extends zero-interest loans to financial institutions in the hope that they will use the money to boost lending to pandemic-hit firms.
The central bank expanded the scheme in April by accepting a wider range of collateral and pledging to pay 0.1 per cent interest to financial institutions that tap loans. The promise to pay the 0.1 per cent interest has led to a surge in demand from financial institutions for the programme. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.
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