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MNI: Kuroda Says BOJ To Extend Lending Facility If Need: Press

(MNI) LONDON
TOKYO (MNI)

The Bank of Japan will extend its lending facilities to support corporate financing as needed if the coronavirus outbreak spreads, Governor Haruhiko Kuroda told the Yomiuri Shimbun in an interview published Tuesday.

Kuroda said that the Special Program, due to expire next March 31, is a temporary measure but the BOJ will extend the program if needed.

He also said expanding the lending facility, lowering short- and long-term policy rates, and increasing purchases of ETFs (exchange-traded funds) were future policy options.

As for Japan's economic climate, Kuroda said it is moving toward a recovery path, but warned of greater downside risks with the current heightened uncertainties.

The Governor also warned that problems for companies will shift to solvency from liquidity the longer the pandemic lasts, which will then increase credit costs for financial institutions.

The BOJ must therefore continue to watch the wider financial system carefully, he said.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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