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The Development Bank of Japan plans to raise 50 billion yen to establish a fund in June to assist auto parts manufacturers hit by the March earthquake and tsunami, it has been learned.

It will ask major financial groups and the Japan Auto Parts Industries Association to invest in the fund. The auto parts industries association will also help the fund select which manufacturers to assist, according to sources.

The fund is designed to finance major auto parts manufacturers, and these makers are expected in turn to invest in subcontractors. The aim is to infuse money into small and medium-sized auto parts manufacturers, which the DBJ and major financial groups do not have regular business contacts with. The DBJ hopes this will speed up the rehabilitation of the auto parts industry.

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Japan Prepares Bailout Fund To Assist Quake Struck Parts Companies

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