Masaaki Shirakawa, Governor of the Bank of Japan stated on Friday that the nation’s financial conditions were rapidly tightening. Stating that is is becoming harder for companies to raise funds through the sale of commercial paper.
Interest rates in Japan, which were lowered last month to 0.1 percent has the BoJ and Governor Shirakawa looking for ways to unlock the countries credit market to prevent the nations recession from getting worse. The bank is in talks to buy as much as 2 trillion yen in commercial paper as a way to help support corporations access to short term funding.