Apr 26, 2020 (Japan Times) - In an ominous sign of what may lie ahead, the number of bankruptcies has been steadily creeping higher.
As of April 24, 93 firms are believed to have gone belly up due to the pandemic, according to Teikoku Data Bank.
The list of insolvent firms spans many sectors: travel agencies, cruise line operators, hotels and ryokan (traditional Japanese inns) are all suffering from a decline in tourism, while retail outlets, restaurants and bars have shuttered as self-quarantines keep customers at home. Manufacturers have cited the disruption of supply chains, specifically those in China, for their demise, while a cram school chain lost much of its business as schools closed and entrance examinations were postponed.
Export markets are paralyzed, the 2020 Tokyo Olympics have been postponed, and businesses are curtailing or suspending operations while stay-at-home requests remain in place. The overall economic impact of the pandemic is difficult to assess at this point, but economists forecast a deep recession ahead.
To ease the widespread damage, Prime Minister Shinzo Abe plans to roll out a multipronged economic stimulus worth ¥117.1 trillion — by far the largest in modern Japanese history. The package will feature universal cash handouts of ¥100,000 per individual. Meanwhile, businesses feeling financial strain are eligible to seek out interest-free loans from public and private lenders.
