Government measures in key jurisdictions 3rd edition final - Flipbook - Page 81
Japan
On 10 June the FSA requested financial institutions to support borrowers by:
•
(i) Responding appropriately to requests from borrowers as those who have already been
provided with loans may want additional loans due to the prolonged impact of Covid-19,
•
(ii) promptly and actively providing support having regard to the situation of borrowers,
including provision of funds as required until other government-funded support become
available to them, and
•
(iii) not judging whether to support borrowers only based on pro forma checkpoints, such as
financial deficits, excess liabilities or downgrading borrower categorisation, but instead giving
utmost consideration to the real situation of the borrowers.
•
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 JPY15,000 per employee per day and a maximum of 100 days in
any 12 months (but disregarding days in the period 1st April to 30th September 2020 if the
subsidy was requested in that period)) during the period the employees are furloughed.
Further, for small/medium sized company (SME):
i.
The subsidy will cover 100% of the amount paid by employers to their employees for
their leave allowance (which is 60% of their salary) required by law, and
ii. if employers voluntarily paid a leave allowance of more than 60% of their employees'
salary, the subsidy will cover 100% of such amount paid by employer.
Application for the subsidy is made to the competent Prefectural Labour Bureau or
Employment Service Center; it can also be done online application.
For a summary of issues on employment in the context Covid-19, please visit our website
here.
Insolvency
•
As of 25 June 2020, the government has not made any changes to insolvency legislation.
Has the
government made
any changes
to insolvency
legislation?
Government measures in key jurisdictions
81