The Finance Ministry said Monday it will cut some of its rates for loans to governmental lending institutions on Wednesday.

Among the rates to be reduced is that for loans to Government Housing Loan Corp., which will be cut by 0.1 percentage point to 1.2 percent.

The corporation is expected to review its housing loan rates in light of the rate cut by the Finance Ministry.

The ministry raised its lending rates for government-backed institutions in July after sharp rises in long-term interest rates in the market.

But it decided to trim the rates, following the recent stabilization in market rates.

The Finance Ministry loan rate for the Development Bank of Japan will also be reduced by 0.1 point to 0.9 percent per annum.

The ministry extends loans to governmental lending agencies using funds raised through government bonds issued under the government’s financial investment and loan program.

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