Leading Japanese banks have received a total of some 72,000 applications for the easing of loan repayment terms from small and midsize companies and homeowners under the so-called debt moratorium law that took effect in December last year, the banks said Monday.
The applications involved 3.26 trillion yen and 1,361 of them were rejected, the banks said.
The total number of applications represents an increase of around 17,000 from the end of February, according to the four banks which also include Mizuho Bank, Sumitomo Mitsui Banking Corp. and Resona Bank.
The law allows moratoriums on debt owed by smaller businesses and homeowners to support those hit by the global financial crisis. It is designed to encourage banks and other financial institutions to relax repayment terms, such as by extending repayment deadlines, for financially strapped smaller companies and individuals with home loans who apply to do so.
Under the new legislation which is credited with a recent decrease in corporate bankruptcies, financial institutions can judge whether they should change the terms of loans. But they are obliged to report their lending conditions to the Financial Services Agency so that the nation's financial watchdog can check for unfair terms.
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