(TOKYO) Japan said yesterday it would inject public funds into companies to help them through the recession as Parliament passed a US$54 billion extra budget including cash handouts for households.
Now it plans to channel funds to other industries through state-backed lenders in a scheme local media said could be worth 1.5 trillion yen (S$25.2 billion).
'Markets welcomed the plan as it would mean that capital would flow to companies and the economy. Fears that companies may go bankrupt eased,' said Okasan Securities equity strategist Hideyuki Ishiguro. But the market rally may be short-lived as 'economic conditions in general remain severe and the plan is unlikely to revive the economy in the mid and long term', he added.
Source:
Business Times
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