Virtually interest-free, unsecured so-called “zero-zero loans” to assist small companies affected by the brand new coronavirus. As the compensation started in earnest this summer season, 236 corporations that went bankrupt after receiving loans have been confirmed by May, a rise of 1.5 instances from the identical interval final yr.
According to Teikoku Databank, the variety of corporations with money owed of 10 million yen or extra after receiving “zero zero loans” and taking authorized liquidation procedures was 236 by final month, the identical as final yr. 1.5 instances greater than the interval.
Last yr, there have been 32 circumstances per 30 days on common, however this yr is accelerating to 47 circumstances.
“Zero zero loans” have a most interest-free interval of three years, and after the primary emergency declaration issued from April to May 2020, there are various circumstances the place loans have been taken to safe working capital. Repayments are anticipated to start in earnest in July.
A analysis firm has analyzed that along with the burden of compensation, there are an growing variety of corporations that haven’t any prospects for administration as a result of burden of excessive costs and labor shortages.
The whole variety of bankruptcies of corporations that obtained “zero-zero loans” is 802, and the uncollectible mortgage quantity is estimated to be roughly 47.06 billion yen.