Japan to extend $42b to Asia

Japan to extend $42b to Asia

TOKYO (AFP): Japan is to extend five trillion yen (US$41.7 billion) in loans to help industrial restructuring in Asia, a report said Tuesday.

The loans would be extended over the next five years, the Asahi Shimbun said quoting Kaoru Yosano, the minister of international trade and industry, who is now visiting Bangkok.

The "tied loans" would require countries receiving aid to purchase materials from Japan, making the scheme beneficial to industries in Asia and Japanese companies, it said.

The loans were not linked to Japan's proposed 30 billion dollar aid package for crisis-hit Asian nations announced by Finance Minister Kiichi Miyazawa in early October, the daily said.

Thailand, and other Asian countries including Indonesia, South Korea, Malaysia and the Philippines are currently in talks with Japan to decide their share of funds from the Miyazawa package.