Japan Will Acquaint a One trillion Yen Emergency Loan
Japan’s central bank published that it will acquaint a one trillion yen emergency loan program in the regions affected by the disasters to facilitate cheap loans to financial institutions. The impact of the March 11 disaster earthquake and tsunami as well as the ongoing nuclear crisis on Japan’s economy The Bank of Japan (BOJ) lowered its assessment Friday of the nation’s economy for April Japan’s economy will likely to be expansive.
In central bank monthly economic report for April, the central bank said “Japan’s economy is under strong downward pressure, mainly on the production side, due to the effects of the earthquake disaster, ”
“The earthquake has harshly dampened production in some areas by damaging production facilities, disrupting the supply chain, and constraining electric power supply,” it added.
On Friday the BOJ told that economy will regain traction and eventually return to a “moderate recovery path” after the economy will probably stay under “downward pressure” for a prolonged period of time. At the inference of a two-day policy meeting Thursday, the BOJ said to devastating affects of the March disaster it will defend its key interest rate at an ultra-thin zero to 0.1 percent in a offer to boost the nation’s flagging economy.