Number of firms going bankrupt in Japan increases in fiscal 2022

It was reported that corporate bankruptcies increased in Japan in the 2022 fiscal year, which ended in March. Credit research organization Teikoku Databank investigated the status of corporate firms with debts of at least 10 million yen ($76,000). The research revealed that 6,799 corporate firms initiated liquidation proceedings in Japan between April 2022 and March 2023. This number increased by 883 compared to the previous fiscal year. The research noted that rising raw material costs and rising energy costs were the most notable reasons for bankruptcy. It was emphasized that the failure to repay loans provided to firms as part of the fight against Covid-19 also played a role in the bankruptcies.