Japan will provide US$5 billion of foreign reserves later this month to help companies with credit crunch raising dollars through the state-backed Japan Bank for International Cooperation (JBIC), Finance Minister Kaoru Yosano said on Tuesday.

"Due to the deteriorating economic conditions toward the end of the current business year on March 31, as an unusual and extraordinary measure, we will lend funds from foreign reserves to JBIC so that the money can supplement the bank's fund procurement activities," Yosano said.

"We need to ensure smooth financing for Japanese firms operating both in Japan and overseas," Yosano told a press conference.

JBIC, has been implementing an emergency program since late last year to provide loans and debt guarantees for Japanese companies operating overseas that are facing difficulty raising funds.

The fresh funds injection from foreign reserves are expected to bolster the bank's operations.

Japan has foreign exchange reserves of more than US$1 trillion, the second-largest in the world after China.

(Xinhua News Agency March 3, 2009)