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.