The Bank of Japan's loan scheme targeting growth industries drew solid demand on Tuesday, pushing its cumulative lending to just 60 billion yen ($740 million) from a 3 trillion yen cap and paving the way for debate within the board about expanding it.
The central bank will consider topping up the programme as early as its next rate review in June, so that it can put it to use later this year to support Japan's reconstruction from the devastating March 11 earthquake. The BoJ said on Tuesday that it would lend an additional 829.6 billion yen under the programme, which offers 0.1 percent loans to financial institutions that lend to sectors with growth potential, such as environmental protection and health care.