Huge Number of Bankruptcies in Japan

More than 13,000 Japanese companies went bankruptlast year, accordine to the Federation of Bankers Associations, which counted only those orrganisations with a capitalisation of at least. Yen Im. (aboit £11 500). Total debts involved in these bankruptcy cases reached Yen361 96‘r, the Association announced. A survey of 13 6*3 bankruptcy cases revealed that 23 yer cent more companies went broke and losses involved amounted to 1€.& per cent more than. was reported in.1966. Of those who took refuge in bankruptcy, 94.7 per cent, were medium or small-scale enterprises capitalised at less than YenlOm, the Association reported. A great number of the ankruptcies were caused 'y a fall off in ‘usiness at a time when the companies werepaying hirh interest rates on loans production costs were rising and cheap labour was becoming scarce, The ra jority of the bankrupt companies were in the manufacturing business, the wholesale trade or engaged in constriction, Bank of Japan officials put most of the blame for the record number of bankruptcies on 'reckless management, '! It is expected in business circles that the Bank of Japan will recormend to the city banks that future financing arrangements should be limited.tc those small businesses in sound financial condition even if this policy results in y LAPeRe. numbers of bankruptcies this year than last. Some business men have already predicted there will be a 'March crisis! when settlements become due at the end of the accounting year. It was noted the bankruptcies occurred despite measures taken by the Government and private banking institutions to provide extra year-end financing for small business,