Japan Seen Easing Out-of-Court Debt Settlement Requirements
Newsfrom JapanPolitics Economy
Tokyo, June 24 (Jiji Press)--The Japanese government is considering measures to make it easier for companies and lenders to settle debts out of court, including relaxation of requirements for such settlements.
The government hopes that the measures will help facilitate economic recovery and efforts to improve productivity.
Meanwhile, the banking industry is concerned about a possible increase in pressure to waive debts.
The balance of loans extended to companies stood at 622 trillion yen at the end of 2020, up 52 trillion yen from a year earlier.
Despite the novel coronavirus crisis, Japanese corporate bankruptcies remain at low levels thanks to government-funded financial assistance to businesses, such as interest-free, unsecured loans.
[Copyright The Jiji Press, Ltd.]