TOKYO Jan 7 Japan's government will set up a
150 billion yen ($1.7 billion)lending scheme to encourage firms
to develop new technologies and collaborate on new business
lines, according to a draft of a stimulus package expected to be
approved as early as this week.
The Development Bank of Japan (DBJ), a state-backed lender,
will administer the lending scheme, a draft of the stimulus
measures showed on Monday, as Prime Minister Shinzo Abe tries to
spur corporate investment and kick-start the economy.
The government will set aside 100 billion yen for the scheme
with the DBJ in an extra budget, and the state-backed lender
will use its own capital for the remaining 50 billion yen, the
The stimulus package will also establish a 200 billion yen
fund with the Japan Bank for International Cooperation (JBIC),
another state-sponsored lender, to encourage overseas mergers
and acquisitions, the draft showed.
Government expenditure for the scheme with JBIC will total
70 billion yen. Lending from JBIC and private-sector banks will
account for the remaining 130 billion yen, the draft showed.
The stimulus package will also include 83 billion yen in
loan guarantees and low-interest-rate loans for small firms, the
Abe has made reviving the economy top priority after voters
returned his Liberal Democratic Party to government last month
after spending three years in the opposition.
($1 = 88.0400 Japanese yen)
(Writing by Stanley White; Reporting by Yuko Yoshikawa; Editing
by Simon Cameron-Moore)