Japan eyes extending $4 billion to large firms to offset virus impact - source

Japan is eyeing offering large companies 400 billion yen ($3.7 billion) in financial support to offset the impact of the coronavirus pandemic, a source familiar with the matter said on Thursday.

Japan's Ministry of Finance (MOF) and the Development Bank of Japan (DBJ) are considering providing 100 billion yen in support each, likely centred on purchases of preferred shares and the provision of mezzanine loans, the person said.

MOF and the DBJ both declined to comment.

A further 200 billion yen would be provided by Japanese banks, said the source, who is familiar with the thinking at MOF and the DBJ.

The measures, which were first reported by the Nikkei business daily, were intended to provide longer-term financial support rather than simply offset a cash squeeze at companies affected by the coronavirus pandemic, the person said.

By Yoshifumi Takemoto