The Bank of Japan said Friday it will terminate some of the emergency financing measures it initiated after a global credit crunch took hold in late 2008 because the environment for corporate funding has since improved.
The central bank said it will halt outright purchases of corporate bonds and commercial paper from financial institutions at the end of December as scheduled, but will continue to offer unlimited 0.1 percent interest loans to banks with approved collateral through March 2010.
The BOJ said the decision at the one-day Policy Board meeting was made "to ensure financial market stability toward the end of the fiscal year."
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