According to Teikoku Databank, there are 36 bankruptcies in September alone: the number is increasing more than double last year’s pace.
SME Financing Facilitation Act has prevented number of small and medium size corporations to file for bankruptcy. This Act will end in about 6 months (March 31, 2012). About 6 months passed since Japanese Cabinet Office, Financial Services Agency, and Small and Medium Enterprise Agency proposed what is called Policy package aiding small and medium enterprise operation considering the extension of SME Financing Facilitation Act.
Financial institutions are making exit strategies under different speculations to end up with profit or no deficit at the end of SME Financing Facilitation Act, and the number of bankruptcy of those took the advantage of the Act has been increasing since the third quarter of 2012. Many are speculating that the number of bankruptcy will continue to increase till March 2013.