The Bank of Japan may offer temporary loans to banks to aid companies with cash-flow shortages amid the Tohoku catastrophe, three sources familiar with the matter said.
The plan may be presented to the central bank's board as early as this month, the sources said, speaking on condition of anonymity because the discussions weren't public. BOJ Gov. Masaaki Shirakawa and his colleagues are scheduled to meet April 6-7 and April 28.
Companies, particularly smaller firms with less cash on hand or lines of credit, may face funding challenges as they repair damages and pay wages while production is suspended due to power cuts. The BOJ effort would help avoid a jump in bankruptcies amid calls from lawmakers and business leaders for the central bank to do more to support the economy amid the disaster.
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