Japan : August Corporate Bankruptcies At 22-Year Low
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-Corporate bankruptcies among firms with liabilities of at least 10 million yen fell 15% on the year to 819 in August, for the 10th straight month of year-on-year decline, and the smallest number for a single month since March 1991, when it logged 772, according to the data released Monday by Tokyo Shoko Research Ltd.
The fall is attributed to adjustments in the environment, including a new financial monitoring system for small- and mid-sized companies that has come with the expiration of the SME financing facilitation act. Loans to small- and mid-sized companies, which had been sluggish on the back of the Bank of Japan's monetary easing, are gradually increasing.
Total liabilities fell 23% to 166.25 billion yen, for the second straight month of year-on-year decrease, marking the lowest August figures in 20 years. Fewer large bankruptcies and many small bankruptcies of less than 100 million yen contributed to the overall decrease.
By sector, the number of bankruptcies among construction firms dropped 37%, or 177, the 18th straight month of decrease. Those among manufactures fell 21% to a year-to-date low of 112.
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