TOKYO: Japan threw another lifeline to small firms in need of cash dollars by promising to channel funds from a government-affiliated bank even as credit market conditions show signs of improvement.

Finance Minister Kaoru Yosano said yesterday that the Japan Bank for International Cooperation would provide around $3 billion in loans to small Japanese firms operating overseas to help them raise cash in the US currency.

"I expect funding needs of around $3 billion from small firms," Yosano told a news conference.