The Bank of Japan’s loan programs to help businesses ride out the recession run the risk of creating more "zombie" companies if they are kept in place for too long, analysts warn.
The central bank loan measures, worth more than ¥100 trillion, have so far fueled a record jump in lending that has kept firms afloat during the nation’s worst economic slump.
The challenge for policy makers is to turn off the tap before an apparently successful lifeline of support for otherwise healthy firms turns into an addictive supply of cash for habitual loss-makers.
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