BOJ offers $78 billion in loan to virus-hit firms in first phase of lending program

The Bank of Japan (BOJ) on Wednesday offered ¥8.28 trillion ($77.74 billion) in loans to financial institutions under its first phase of its new lending program. The move came in a bid to transfer funds to firms that have been heavily affected by the COVID-19 pandemic.

The 3-month loans will be extended on Thursday through December 25, according to the central bank.

The BOJ stated that it expects the amount of money rolled out through the loan program to eventually reach ¥110 trillion.

The move comes after the central bank eased monetary policy in March and April, pledging to purchase more assets, clear unlimited amounts of government debt, and also create lending programs for firms hit by the virus.

The number of participants surged from 18 to 180 in March after the central bank said it would pay a 0.1% interest to firms in the program, effectively subsidizing those that accepted the loans.