In July Japanese corporate bankruptcies rose 21% year on year to 1,617. Total debts owed by bankrupt firms tripled to 4, 260bn Yen (Ј26bn).
There is concern that the rate of bankruptcy could be boosted even further by Japan’s recent interest rate rise. One analyst, Takakazu Nakamori, the deputy director at Teikoku Data Bank, predicted that though the Bank of Japan’s decision to raise the rate of interest on Friday would not itself cause bankruptcies, it would provide banks with an excuse to act less favourably towards problematic corporations.
The trend is expected to continue.
Financial Times
