Trade chief Kaoru Yosano promised Tokyo Gov. Shintaro Ishihara on Friday he would seek legislative measures in extraordinary Diet sessions this fall to help smaller firms overcome fundraising difficulties, officials of the Ministry of International Trade and Industry said.
The pledge, made during their first meeting on the issue, is in line with the government's plan to convene an extraordinary Diet session this fall to back up smaller firms and venture businesses as part of efforts to revitalize the Japanese economy.
Yosano also suggested that the two meet with Obuchi next week to work on further details.
Specifically, the government will work to apply its credit guarantee to bonds offered through private placement in order to facilitate new bond issues by small firms.
To diversify the ways small firms can raise funds, Yosano expressed support for Ishihara's plan to securitize loan assets held by banks with the help of state credit guarantees.
To help the metropolitan government set up its venture capital fund, Ishihara asked Yosano for state investment in the scheme.
The two sides also agreed to cooperate in build a computer database so small firms can better access the over-the-counter market.
MITI officials said the government is expected to deal with these measures by revising relevant laws and by using its planned supplementary budget.