DPJ passes bill freezing loan repayments for companies

16:53, November 19, 2009      

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The Democratic Party of Japan (DPJ) passed a bill on Thursday that will help small- and medium-size companies to hold off debt repayments amid the current dire economic conditions the nation is facing.

The move is in line with the DPJ's manifesto promise to support small- and medium-size businesses.

The bill is the first passed by the DPJ since it won a massive majority in an August election, ending more than half a century of almost interrupted Liberal Democratic Party (LDP) rule.

The vote to pass the bill was boycotted by the opposition LDP and its coalition party, the religious party New Komeito.

The bill requests that banks and other lenders extend repayment periods for small- and medium-size businesses, as well as homeowners struggling to meet mortgage demands.

Japan's economy is currently in a weakened state in the aftermath of the credit crisis that started in the United States last year, and the bill aims to keep more companies and households afloat until a sustained recovery is in place.

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