Japan bankruptcies rise as COVID relief repayments come due

Jul 11, 2023 | News On Japan

TOKYO - Corporate bankruptcies rose in Japan in the first half of this year as some businesses struggled to pay back COVID relief loans. The number of firms going bust exceeded 4,000 for the first time in five years.

Private credit research company Teikoku Databank says 4,006 companies went under or began liquidation proceedings in the six months through June. That was up 31.6 percent from the same period last year. The firms each had debts of at least 10 million yen, or about 70,000 dollars.

A total of 304 had received coronavirus relief loans that were effectively interest-free and collateral-free. It was the highest number for a six-month period.

Retail bankruptcies totaled 834, up 45.8 percent. Restaurants were especially hit hard.

The number in the overall service sector that includes hotels was 958, up 23.8 percent.

The researcher said bankruptcies could increase in July and onwards as some businesses face the triple threat of loan repayments, rising prices and a labor shortage.

Source: ANNnewsCH

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