Japan planning financial support for overseas firms

The Japanese government plans to include in its emergency economic package a fund jointly supported by the private sector to assist domestic companies' overseas operations, a top-selling business daily here reported Monday. The planned fund will provide financial support to domestic companies in the form of investment, instead of loans, to help them acquire foreign firms and make other overseas investments, according to the Nikkei Shimbun. The government-affiliated Japan Bank for International Cooperation (JBIC) will invest JPY 200 billion (USD 2.3 billion) in the fund, the newspaper adding that the government will solicit investment by banks and other private investors. The government will provide JPY 70 billion (USD 802 million) to JBIC for the fund from its fiscal investment and loan program. The planned fund could lead to a lower value for the yen as it will encourage the selling of the yen and the buying of foreign currencies.