The government is expected to approve the budget, which will also include subsidies to help companies pay rent and wages as they close businesses, at a cabinet meeting.

A masked woman walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, May 21, 2020.
A masked woman walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, May 21, 2020. (AP)

Japan is considering a fresh stimulus package worth over $929 billion that will consist mostly of financial aid programmes for companies hit by the coronavirus pandemic, the Nikkei newspaper said on Monday.

The package, to be funded by a second extra budget for the current fiscal year beginning in April, would follow a record $1.1 trillion spending plan deployed last month to cushion the economic blow from the pandemic.

The second extra budget, worth $929.45 billion (100 trillion yen), will include $557 billion (60 trillion yen) for expanding loan programmes that state-affiliated and private financial institutions offer to firms hit by virus, the paper said.

Another $250 billion (27 trillion yen) will be set aside for other financial aid programmes, including $139 billion (15 trillion yen) for a new programme to inject capital into ailing firms, the Nikkei reported.

The government is expected to approve the budget, which will also include subsidies to help companies pay rent and wages as they close businesses, at a cabinet meeting on Wednesday.

($1 = 107.5900 yen) 

Source: Reuters