Japanese Bankruptcies Hit 25 Year Low

The number of corporate bankruptcies in Japan declined 7.3 percent in October from a year earlier to 742, the lowest for the month in 25 years, a credit research agency said Tuesday.

Business failures fell for the seventh consecutive month, helped by banks’ acceptance of loan rescheduling requests from small borrowers and the solid performance of major exporters on the back of the weaker yen, Tokyo Shoko Research said.

Liabilities left by bankrupt companies in the reporting month declined 14.4 percent from a year earlier to 106.24 billion yen ($860.9 million), with no large-scale business failures involving debts of more than 5 billion yen for the first time since June 1989.

Nine of the 10 industrial sectors saw fewer bankruptcies than a year earlier. “Some wholesalers took a hit from higher purchase costs due to the yen’s depreciation and some companies were affected by increased personnel expenses in China,” a Tokyo Shoko Research official said.

The number of corporate bankruptcies climbed in three regions including Kanto and Shikoku, while falling in five areas including Hokuriku and Kyushu, according to the agency.

via Mainichi

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza