The Japanese government plans to spend a total of 37 trillion yen ($370 billion) to help businesses meet their ends as parts of its additional economic stimulus package, according to a published report.
Japanese daily Nikkei said on its website the Development Bank of Japan will increase its lending program to 15 trillion yen from 1 trillion yen. In addition to the low-interest loans it now offers, the bank could also start purchasing corporate bonds and providing loan guarantees, the report said .
Of the 37 trillion yen, 20 trillion is to be funneled to large and midsize companies with 17 trillion yen directed to small companies.
The latest measure will put more emphasis on midsize firms, which have fallen outside the scope of the assistance , Nikkei said .
On Friday , Japan is expected to unveil a fresh economic stimulus package, valued at more than 2% of the country's GDP. Since last year, the Japanese government has introduced stimulus packages worth a total of 75 trillion yen.
The bank of Japan's policy board took additional measures Tuesday to help the flagging economy but warned that economic conditions will continue to deteriorate.