The Japanese Bankers Association has officially announced guidelines for facilitating business revitalization of small and medium-sized enterprises whose management has become difficult due to the effects of the new coronavirus.
Relaxation of requirements is included, such as not necessarily requiring the resignation of the management when a financial institution gives a company a grace period for repayment.
The Japanese Bankers Association has formulated and announced guidelines for the smooth progress of business revitalization of small and medium-sized enterprises whose management has deteriorated due to the new corona.
As a result, in advancing business revitalization, the requirements for "private consolidation", in which companies and financial institutions discuss and decide on repayment grace and debt deduction, etc., will be relaxed.
Specifically, we will extend the deadline for resolving insolvency from the previous 3 years to 5 years so that we can devote a longer period to business revitalization.
In addition, until now, financial institutions have requested the retirement of management instead of responding to financial support, but in consideration of the effects of infectious diseases such as the new corona and natural disasters, we will be able to respond by reducing compensation etc. ..
For even faster rehabilitation, we will establish a mechanism to support the formulation of rehabilitation plans by having third-party experts such as lawyers and certified accountants enter between the company and financial institutions.
The Japanese Bankers Association will apply this guideline from the 15th of next month.
Nobuaki Kobayashi, who chaired the study group that examines the guidelines, said, "I hope that the guidelines will be used to promote the business revitalization of small and medium-sized enterprises smoothly and promptly, leading to the revitalization of the Japanese economy." rice field.