Daily Management Review

Japan pushes up bonds volume to support economy


Japan is forced to significantly increase the issue of government bonds in the current fiscal year, which began on April 1, to finance a large-scale program of measures to support the economy in the context of the COVID-19 coronavirus infection pandemic.

Nelo Hotsuma
Nelo Hotsuma
The volume of additional emission will amount to 18.2 trillion yen ($ 165 billion). This is a record amount of additional placement, the previous maximum of 16.9 trillion yen was recorded during the global financial crisis in 2009, writes Asahi Shimbun.

As a result, the total annual issue of state bonds will amount to 147 trillion yen, which is the maximum over the past five years. Bonds with all maturities will be increased, with the exception of 40-year bonds and bonds indexed by inflation.

Earlier on Tuesday, the Japanese government unveiled a record-breaking stimulus package - 108.2 trillion yen ($ 994 billion), including measures to support homeowners and small businesses amid the spread of coronavirus. Its size is equivalent to 20% of the country's GDP. As part of these incentive measures, the Japanese, whose income has fallen sharply due to the current crisis, will receive about $ 3,000 each.

source: asahi.com