Japan to introduce $107 bn recovery package

August 29th, 2008 - 7:13 pm ICT by IANS  

Tokyo, Aug 29 (DPA) The Japanese government Friday unveiled an economic stimulus package totalling 11.7 trillion yen ($107.03 billion) to lift the financial burden caused by rising oil prices and shore up the economy.The government was to install the package to help small- and medium-size firms raise funds, financially support business sectors hit hard by rising oil prices such as truckers or bus and taxi operators, and reduce income and residential taxes.

The lion’s share of the package, is, however, a 400-billion-yen credit guarantee programme that backs loans worth about 9 trillion yen, which brings genuine spending down to about 2 trillion yen.

The package was also designed to help temporary workers to land stable employment, improve productivity in the agricultural industry and reduce freeway tolls.

Prime Minister Yasuo Fukuda, who faces elections within a year, struggles with a big drop in popularity since he took over leadership of the ruling Liberal Democratic Party.

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