The number of corporate bankruptcies in the construction industry in Japan fell 20.2 percent from a year earlier to 1,225 in April-September 2013, hitting the lowest level in 20 years for a first half period of a fiscal year, Tokyo Shoko Research said. The number has dropped for the consecutive five years and eight besides Shikoku out of the nation’s nine regions saw a decline. The total liabilities left by failing businesses increased for the first time in five years to 677.1 billion yen (241.4 percent of a year earlier), largely because of special liquidation of a dissolved construction company in Hokkaido, Kabutodecom with 506.1 billion yen debt.

According to Tokyo Shoko Research,the drop in bankruptcies results partly from repayment extension that banks offer even after the expiration of the financing facilitation law for small businessesin March and reconstruction works of Great East Japan Earthquake fully in progress. Possible concerns for the coming time are that higher expenses due to shortage of hands and materials squeeze the business and that the number of public works varies in different regions, the research agency said. (2013/10/09)