Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 62
Japan
On 8 May the FSA addressed the issue of property tenant SMEs and individuals facing
difficulties in paying rents and property related- business operators (e.g., hotels and other
accommodation service providers, leisure facility businesses, owners of buildings for
rent, etc.) facing cash-flow problems due to decline of incomes, by:
•
(a) requesting lender financial institutions to support cash-flow of borrowers who are
such tenants or property related-business operators by:
– promptly and flexibly implementing new or bridge loans, reducing principals and/
or interests or rescheduling repayment terms of existing loans,
– ensuring such implementation above especially where the borrowers are landlords who
have granted to their tenants rent reductions or rescheduled rent payment terms, and
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– being considerate against charging fees or penalties for changing terms of existing
loans.
•
(b) requesting managers of REITs (real estate investment trusts and investment
corporations) to take flexible measures such as rent reduction or rescheduled rent
payment terms with tenants of properties under their management.
On 16 March the FSA relaxed the maximum lending limit per borrower under the Money
Lending Business Act.
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Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
Japan currently has an “Employment Adjustment Subsidy” system; this system has
been revised by the Japanese government to help businesses suffering as a result of
Covid-19. The system is designed to help employers avoid termination by covering
part of their employees’ salaries (up to a maximum of JPY8,330 per employee per
day and a maximum of 100 days in any 12 months (but disregarding days in the
period 1st April to 30th June 2020 if the subsidy was requested in that period))
during the period the employees are furloughed.
•
The Employment Adjustment Subsidy system has been further revised on 1 May
2020 as below for small/medium sized company (SME) (definition of SME has been
provided in our newsletter):
(i) will cover 100 % of the amount paid by employers to their employees for their
leave allowance (which is 60 % of their salary), and
(ii) if employers paid leave allowance of more than 60% of their salary, will cover 100
% of such amount paid by employer,
up to a maximum of JPY8,330 per employee per day in either case.
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Insolvency
Has the
government made
any changes
to insolvency
legislation?
•
As of 15 May 2020, the government has not made any changes to insolvency
legislation.
Government measures in key jurisdictions
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