ANNOUNCEMENT 21 Oct 2011

In October 2011, the government of Japan announced a change in financial export support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Government of Japan. (2011). Comprehensive Package Responding to the Yen Appreciation. Available at http://www5.cao.go.jp/keizai1/2011/111021_yen_appreciation.pdf


Inception date: 21 Oct 2011 | Removal date: open ended
Still in force

Trade finance

On 21 October 2011, the Japanese Cabinet agreed to a "Comprehensive Package Responding to the Yen Appreciation". The following points are likely to affect foreign commercial interests.
 

  • An extension of the special credit guarantee scheme established after the Great Japanese Earthquake to SMEs affected by the Yen appreciation. The duration of the scheme shall be extended until March 2012. Furthermore, the Cabinet proposes "relaxing the requirement for SMEs to qualify".
  • A reduction of the interest on loans to SMEs by up to 0.5 percent, provided the loan has been granted by a public financial institution.
  • A subsidy for companies producing high value parts and components that choose Japan as their "bases for R&D". A total amount of Yen 500 billion (ca. USD 6.5 billion) is envisioned for this scheme.
  • Provide further support for SMEs to "open up overseas markets" including the aid to feasibility studies.

 
However, the Japanese parliament will have the final say as to which measures will be implemented and in what form.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A