© Reuters. FILE PHOTO: A Japanese yen bill is seen in this illustrated photo taken on June 1, 2017. REUTERS / Thomas White / Illustration / File Photo
TOKYO (Reuters) – The number of corporate bankruptcies in Japan fell at the fastest rate this year to reach the lowest level in 50 years in July, thanks to financial support from the government and banks, a credit research firm said on Tuesday. from the private sector. .
There were 476 company bankruptcies in July, 40% less than in the same month last year, Tokyo Shoko Research showed, pointing to government support for corporate financing amid a resurgence of the COVID-19 pandemic.
That was less than the previous July low of 482 in 1990, during the peak of Japan’s asset bubble economy, based on comparable data available since 1972.
It was the lowest total corporate bankruptcies in 50 years for the month of July, the credit research firm said, with liabilities of 71.5 billion yen ($ 647 million) down 30% from the previous year.
However, pandemic-induced bankruptcies totaled 138 in July, compared with 98 in the same month a year earlier, bringing the total from January to July to 900, up from roughly 800 from February to December. 2020, he said.
As the protracted pandemic undermines corporate funding, analysts don’t expect bankruptcies to stay low indefinitely.
($ 1 = 110.4300 yen)
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