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          World Business

          Japan's corporate bankruptcies down 8.7% in fiscal 2009

          (Xinhua)
          Updated: 2010-04-08 13:54
          Large Medium Small

          TOKYO - The number of corporate bankruptcies in Japan in fiscal 2009 fell by 8.7 percent compared to the previous year, according to data released on Thursday by Tokyo Shoko Research (TSR).

          Some 14,732 companies declared bankruptcy in fiscal 2009, compared to 16,147 in the previous year. The overall cost of the bankruptcies was also down by 49 percent.

          It was the first time in four years that the number of companies to go bankrupt in Japan has decreased, and the first time that the liabilities left behind had fallen in three years.

          Related readings:
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          Japan's corporate bankruptcies down 8.7% in fiscal 2009 Report: Japan Airlines to speed up mass job cuts
          Japan's corporate bankruptcies down 8.7% in fiscal 2009 Chinese, Japanese vice PMs vow to boost economic ties
          Japan's corporate bankruptcies down 8.7% in fiscal 2009 Japan not to pressure China on yuan

          The company said that it believed the reason for the decrease in the number of companies going bust was the stimulus measures but in place by the government to fight the economic downturn, which made it easier for struggling entities to borrow money to stay afloat.

          The data from TSR also showed that the number of bankruptcies for March was down 14.5 percent from the previous year, to with 1,314 firms going bust.

          The data came on the back of Bank of Japan (BOJ) Governor Masaaki Shirakawa' Wednesday saying that he believed there were signs that the nation's tentative economic recovery, currently supported by stimulus packages, was showing signs of moving toward becoming self-sustaining.

          The government last month also upgraded its assessment of the economy, amid generally positive data in most areas of the economy.

          Japan is recovering from a severe downturn in the aftermath of the credit crisis that started in the latter half of 2008 in the aftermath of the collapse of banking giant Lehman Brothers.

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