Japan Increases Fiscal Loans and Investments by $5.85 Billion to Strengthen Supply Chains and Support Long-Term Spending

Funds to Support Advanced Logistic Facilities, Data Centres, Chip Production, and Renewable Energy; Aims to Enhance Japanese Firms' Supply Networks through Collaboration with Developing Countries.

• The Japanese government plans to augment its fiscal loans and investments by 886 billion yen ($5.85 billion) to bolster supply chains and encourage long-term spending, according to a draft plan.
• Funding will be allocated through government-affiliated financial institutions to increase the supply of chips and infrastructure such as advanced logistic facilities and data centres.
• The draft budget also includes provision of 150 billion yen for the development of power grids in an effort to promote greater use of renewable energy.
• With the aforementioned additional funding, the total spending and loan programmes will be updated to 17.2 trillion yen for the current fiscal year, up from an initial 16.3 trillion yen.
• The Japanese government also plans to work in collaboration with developing countries, particularly in the 'global south', both to secure vital resources and to better supply networks for Japanese firms. Measures to facilitate this will include an additional financial support of 300 billion yen through the Japan Bank of International Cooperation (JBIC) and 406 billion yen in yen loans for infrastructure exports.

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