This document explains the special financial measures announced by the Bank of Japan (BOJ) on August 21, Reiwa 7, for victims and affected businesses in Akita Prefecture following the heavy rainfall that began on August 20.
Disaster Designation and Target Areas
The heavy rainfall disaster occurred across the entire Akita Prefecture starting from August 20, Reiwa 7, causing widespread damage including river flooding, landslides, and disruption of roads and railways. The Bank of Japan, considering the serious economic impact of this disaster, requested financial institutions in the affected areas to promptly implement relief measures. The target area encompasses all 25 municipalities within Akita Prefecture, representing a comprehensive response that reflects the scale and extent of the damage.
Requests to Financial Institutions
The Bank of Japan has requested all financial institutions in Akita Prefecture to prioritize flexible support for the cash flow needs of disaster victims. Specific measures include special interest rate financing for disaster recovery funds, proactive application of repayment condition changes and deferment measures for existing loans, flexible handling of collateral and guarantees, and simplification and acceleration of procedures. Additionally, appropriate consideration has been requested for the continuation and restoration of financial services, such as temporary installation of ATMs and extension of branch operating hours.
Support Measures for Victims and Affected Businesses
For individual disaster victims, special interest rates and relaxed screening criteria will be applied to various loans including living reconstruction funds, housing repair and reconstruction funds, and automobile purchase funds. For small and medium enterprises and agriculture, forestry, and fishery operators, flexible responses will be provided for funds necessary for business continuity and reconstruction, such as equipment recovery funds, working capital, and inventory replenishment funds, through the expansion of unsecured and unguaranteed financing and flexible handling of existing debt condition changes.
Implementation Period and Application Conditions
These special measures will be implemented from August 21, Reiwa 7, with a basic period of six months. However, extensions will be considered based on the damage situation and recovery progress. Application conditions include proof of direct damage from the disaster, submission of disaster certificates or damage certificates, and presentation of recovery plans. However, the burden on disaster victims is reduced through document simplification and utilization of alternative methods.
Coordination System with Regional Financial Institutions
The Bank of Japan Akita Branch is working closely with all financial institutions in the prefecture, including regional banks, credit unions, credit cooperatives, and agricultural cooperative financial institutions, to establish a support system. Additionally, a strengthened information sharing and cooperation system has been established with related organizations such as Akita Prefecture, municipalities, chambers of commerce, and agricultural organizations to realize prompt and accurate financial support according to the needs of disaster victims.
The article clearly demonstrates that the Bank of Japan's financial measures during disasters play an important role in strongly supporting the early normalization of economic activities in affected areas and the recovery of local communities from a financial perspective.