The Bank of Japan (BOJ) has extended its loan scheme for banks operating in areas affected¹ by the earthquake and tsunami² by six months.

日本银行对遭受地震和海啸地区的银行实行延长六个月的贷款方案。

The central bank had offered 1tn yen³ ($13bn, £9bn) in special loans to banks to ensure liquidity⁴ for reconstruction⁵ efforts after the natural disasters.

The loan scheme was due to expire（期满） at the end of this month.

BOJ also left its interest rate unchanged at 0.1% in a bid to boost growth amid uncertain economic outlook.

"Rebuilding from the earthquake is the dominant⁶ story for Japan, and this will become an identifiable force in the second quarter of next year." said Adrian Foster of Rabobank International.

Uncertain outlook

Japan's economy in a recession and has contracted for three successive quarters.

Though the reconstruction and rebuilding efforts are expected to boost growth, analysts⁸ warned that external factors may hurt Japan's economy.

"Uncertainty⁹ over Europe remains¹⁰ and there is a possibility that more negative news will come out of the region." said Yuichi Kodama of Meiji Yasuda Life Insurance.

The are fears that a global economic slowdown may dent⁷（削弱） demand for Japanese exports and impact growth.

Analysts said the central bank may be forced to ease its policies even further if that happened.

"I think there is still a 50% chance of additional easing by the BOJ this year." Mr Kodama added.