Local governments in Hokkaido may expand relief for small and medium enterprises hit by Mount Usu's eruption last year after criticism that existing arrangements do not meet victims' needs, government officials said.
The plan, which would offer expanded loans and partial debt guarantees, was presented recently by the Hokkaido Prefectural Government to three municipal governments near the volcano — Abuta, Date and Sobetsu.
The three governments hope to inaugurate the plan in July and offer it through the end of this year.
In July 2000, the prefectural government began offering up to 10 million yen in concessionary loans at annual interest rates of up to 1.3 percent to small and medium businesses needing to refinance loans they had established before the March 31 eruption.