Japan to Scrap Promissory Notes in 2026 at Earliest
Tokyo, Feb. 19 (Jiji Press)--The Japanese government will ask the business world to stop using promissory notes, paper instruments used in corporate financial settlements, informed sources have said.
An expert panel of the industry ministry is expected to present a draft plan to scrap promissory notes at a meeting to be held in the near future.
A questionnaire survey by the ministry has found that it takes about 100 days on average for issuers to pay the promised amounts of money to the payees, double the average of about 50 days spent in cash-based transactions.
The use of promissory notes tends to increase financing strains on small businesses because of the long periods needed to receive the promised payments.
To scrap the promissory notes, the government will encourage companies to increase the use of internet banking services, electronic commercial bills and other means.
[Copyright The Jiji Press, Ltd.]