Kumamoto recovery: LDP proposes support as SME financial aid expands

The Liberal Democratic Party (LDP) has compiled a set of proposals aimed at supporting recovery in Kumamoto Prefecture, where residents face a “quadruple hardship” due to the 2016 earthquake followed by two subsequent floods. The proposals, which are to be submitted to Prime Minister Takaichi, emphasize three main pillars: support for disaster victims, reconstruction of affected areas, and the continuous strengthening of financial and human resources. Key measures include detailed life reconstruction support, such as loan deferrals for those facing multiple disasters, and early implementation of tourism support across Kyushu to prevent reputational damage.

In conjunction with these efforts, the Ministry of Economy, Trade and Industry is providing additional financial assistance to small and medium-sized enterprises (SMEs) in five municipalities designated as areas of severe disaster: Yatsushiro, Uki, Misen, Kashima, and Hikawa. This assistance includes special measures for SME credit insurance and interest rate reductions on disaster recovery loans provided by the Japan Finance Corporation. For eligible businesses, the interest rate on loans up to 10 million yen will be reduced by 0.9% for three years following the loan.