loans

Banks in the quake-affected north-east of Japan will soon be able to borrow longer term from a new scheme worth ¥1,000bn ($11.7bn), offering one-year loans at 0.1 per cent.

The scheme comes on top of ¥21,800bn ($265bn) liquidity made available immediately after the quake and a doubling of the Bank’s asset purchase programme from ¥5,000bn to ¥10,000bn ($121bn). Tokyo has also been involved in an internationally co-ordinated effort to prevent the yen appreciating too sharply. So far, though, the BoJ remains unwilling to buy government bonds, a measure adopted in several other countries since the crisis.

In addition to such measures, at today’s meeting, the Bank judged it necessary to introduce a funds-supplying operation that provides financial institutions in disaster areas with longer-term funds in order to support their initial response efforts to meet the future demand for funds for restoration and rebuilding.

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If rumour is true, things are looking up for the 100,000 Hungarians more than 90 days past their mortgage due date. What’s left of Hungary’s international loan may end up in a mortgage-relief fund, intended to allow people to rent their homes, reports Reuters.

The new fund – reported in daily Magyar Hirlap and not yet confirmed by officials -  would buy property (that would otherwise stand to be repossessed) from commercial banks, allowing mortgage-holders to rent the property. The paper also said that the bad loans of households would be replaced by state loans, though it did not name a source. Read more >>

The Bank of Japan unveiled the framework of its new ¥3,000bn ($33bn) lending programme on Tuesday in its latest effort to spur economic growth to help end deflation.

The temporary lending programme, to be introduced by the end of August, will supply one-year loans at the bank’s overnight rate against eligible collateral to financial institutions to lend to companies with the objective of raising productivity and creating consumer demand. Read more >>

Greece has received the first tranche of bilateral eurozone loans, according to a press release from the Greek Ministry of Finance.

$14.5bn was disbursed this morning from the European Commission, adding to $5.5bn released from the IMF on May 12. The numbers break down as shown in column 2 of the table. Column 1 shows Money Supply’s estimate of how the total €110bn breaks down. Columns 3 and 4 compare the proportions lent so far. Read more >>

Below is a table showing the size of bilateral loans we believe will be due from each eurozone country. Figures are based on the ECB subscriptions ratio.

We are filling in the right-hand side as we see parliamentary approvals. Read more >>