Bank of Japan offering easier loans in search for economic recovery by Milota Sidorova

Last weeks we have heard that Chinese economy challenged Japan and beat it with its 2Q average GDP. For the first time since WWII any other country generated such economy potential to rally with the second richest nation in the world. But although Japan people still remain second richest people in the world (if counted on GDP per capita), long-term is not that economically sustainable. Strong yen and lowering export, relatively weak customer spendings and aging population are playing key factors in predicting the future. Japanese representatives have already replied promising new emergency policies.One of them certainly is a recent extension of domestic funding program via ! Bank of Japan. Although program was introduced in December, government suggested it would be necessary to expand easier loaning policies and support the economy.According to Monday meeting, Bank of Japan would offer around 10 trillion yen (118 billion dollars) for the next six months. The total offered sum would top up to 30 trillion yen backed by the central bank. Domestic financial institutions would be free to take new or extend existing loan during this period, while their key interest rates would remain unchanged at 0.1 per cent. Japanese government launched this program last year and aimed it just for three months. Japan is one of the most developed societies in the world characterized by slowing age dynamics, enormous dependency on international export (especially food) and focus on export of electronics and technologies. Some observers speak of lack of domestic employees, even women. According trends from past decades, Japanese men tend to choose wives even overseas! . This demographic change is refelected within the society and! the eco nomy as a partial marker.

related story (sgx18089): http://www.france24.com/en/20100830-central-bank-extends-fun...

by Milota Sidorova for Cantell TV (http://cantell.tv)

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