The Japanese government is expected on Friday to outline a scheme to help small and medium-sized companies seek a reprieve on debt repayments of up to three years, as part of a broad programme to help businesses weather the impact of the global downturn.

The scheme being considered aims to make it easier for borrowers to ask their bank for an extension of principal and interest payments for a maximum of three years and would be limited to small businesses and individuals with mortgages who have lost their jobs.