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    Japan Intends To Help Small And Medium Enterprises To Finance Overseas Subsidiaries

    2011/12/30 11:49:00 14

    Japan Intends To Help Companies Finance

    The Japanese Ministry of economic and industrial development (METI) plans to provide financing support to overseas subsidiaries of domestic SMEs through government backed loan guarantees.

    Japan's Ministry of economy and industry plans to submit a bill on aid measures to the Japanese parliament next year.


    Small business

    overseas

    The department needs local monetary funds to pay salaries and obtain working capital to expand operation.

    However, their very low credibility often prevents them from obtaining loans from local banks.

    The Ministry of industry and Commerce will expand the operation of Japan Finance Corporation (Japan Finance Corp.), so that government backed banks will issue letters of credit to these companies.


    In addition, Japan Finance Corporation will also be in

    domestic

    Financial institutions extend their loan guarantees through small businesses providing loans to overseas subsidiaries in Japan's domestic parent companies.


    In addition, Japan's Ministry of economy and industry is also planning for regional finance.

    mechanism

    The tax accounting office, non-profit organizations and other institutions that can support the operation of SMEs in Japan create a certification plan.

    The plan will give specialized support outside the traditional channels such as the small business chamber of Commerce.

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