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Public support needed for firms during COVID-19 but with limits

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The ruling Liberal Democratic Party has compiled a recommendation for extending more than 10 trillion yen ($93 billion) in public support for businesses that are struggling under the COVID-19 crisis.

The proposed measures include the bold step of capital injection on top of making low-interest loans available.

If the coronavirus crisis were to last long, that could put even major businesses, which have relative financial strength, under difficulties due to a shortage of capital. The government should study the proposals and consider implementing them in safeguarding against a possible financial emergency.

Major overseas airlines have fallen into financial crises. In Japan, too, a wave of coronavirus-induced bankruptcies has hit big businesses, as major apparel maker Renown Inc. has requested bankruptcy protection under the Civil Rehabilitation Law.

Many major companies have abundant cash on hand thanks to the prolonged business boom of recent years. Government........

© The Asahi Shimbun