Japan Govt to Review DBJ's Crisis Response Operations

Tokyo, Oct. 2 (Jiji Press)--The government is set to review the
Development Bank of Japan's special operations aimed at supporting firms hit
by the global financial crisis, in order to seek funds for key policy
measures pledged by the ruling Democratic Party of Japan, sources have said.

In the fiscal 2009 supplementary budget, enacted before last
month's change of government, a total of 350 billion yen has been set aside
for use to enhance the government-backed lender's capital base to help it
carry out the special corporate support measures.
The DPJ-led administration is reviewing the extra budget in order
to secure financial resources for the pledged key policy measures including
new child allowances for households.
Still, the administration will carefully conduct the review of the
DBJ's special operations while examining corporate financing conditions,
because there are concerns about a renewed dip of the economy, the sources
said.
In the special operations launched in December last year, the DBJ
has provided low-interest emergency loans totaling 2.4 trillion yen to
struggling companies and bought 361 billion yen worth of commercial paper.
Of the 350 billion yen earmarked for the DBJ, the government has
invested 103.2 billion yen in the bank following the enactment of a bill to
amend the law governing the lender's operations.
The administration is considering reviewing the use of the
remaining 250 billion yen, the sources said.
Among the companies that have received funds under the DBJ's
special support programs are Nissan Motor Co. <7201>, Mitsubishi Motors
Corp. <7211> and Japan Airlines <9205>.