Japan to help ASEAN firms

Japan to help ASEAN firms

TOKYO (AP): Japan's government will help smaller companies in Southeast Asia raise funds to help ease the credit contraction in the region, the Nihon Keizai Shimbun said in its Friday morning edition.

The move is in line with the agreement reached at the Asia- Pacific Economic Cooperation forum summit in Malaysia in mid- November to promote efforts to stabilize the financial system in Asia.

The Export-Import Bank of Japan, the Asia Development Bank, the World Bank and others will jointly set up a Y2 trillion-Y3 trillion credit guarantee association in Indonesia to encourage local banks to expand loans to private companies in the nation, including Japanese firms.

The government-affiliated Shoko Chukin Bank will extend loans to Japanese companies that have subsidiaries in other Asian nations. The bank will lend operating funds to parent companies to help subsidiaries that are having difficulty borrowing money from local financial institutions. The Shoko Chukin Bank began accepting applications for such loans in December.