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Japan extends its post-quake loan scheme by six months

Japan extends its post-quake loan scheme by six months

The Bank of Japan has broadened its loan system for banks functioning in the regions exaggerated by the tsunami and earthquake by 6 months. The central bank had presented 1tn yen ($13 billion) in unusual loans to banks to make sure liquidity for rebuilding efforts after the natural catastrophes.

The loan scheme was due to an end at the end of October. Bank of Japan also left its interest rate unaffected at 0.1 percent in a bid to enhance growth amid unsure economic prospect.

"Transforming from the earthquake is the prevailing story for Japan, and this is going to become a restricted force in the 2nd quarter of forthcoming year." whispered Adrian Foster of Rabobank International. Japan's economy in a downturn and has tapered for 3 consecutive quarters.

Though the rebuilding and reconstruction efforts are anticipated to enhance growth, forecasters advised that external factors might hurt economy of Japan. "Doubt over Europe remains and there’s a prospect that more unconstructive news will come out of the province." whispered Yuichi Kodama of Meiji Yasuda Life Insurance.

There are fears that a worldwide economic slowdown might dent demand for Japanese exports and impact growth. Forecasters said the central bank might be enforced to ease its strategies even further if that happened. "I believe there’s still a fifty percent chance of added easing by the Bank of Japan this year." Mr. Kodama added.