By Megumi Fujikawa
The Bank of Japan’s new climate change mitigation lending facility will be more efficient and flexible than buying green bonds, Governor Haruhiko Kuroda said Friday.
“The actions of the Bank of Japan are expected to stimulate banks’ efforts to provide more climate-related loans, and I believe this is in line with the needs of companies,” Mr. Kuroda said at a press conference, noting that Japanese companies, tend to rely more on loans. when they raise funds for investment.
Mr. Kuroda responded to the suggestion by some analysts that buying green bonds would be more efficient than a line of credit.
Earlier in the day, the bank said it would introduce a line of credit to help commercial banks finance projects related to climate change mitigation. The bank plans to announce the general outline of the facility at its next policy meeting in July.
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