Regarding the government's loan system for small and medium-sized enterprises whose sales have fallen due to the influence of the new corona, the Constitutional Democratic Party has reduced its debt, saying that bankruptcy and dismissal may increase sharply after the period when repayment is postponed. I submitted a bill to the Diet to enable it.
This loan system provides loans through financial institutions with virtually no interest and no collateral, and the repayment of principal is postponed for up to 5 years.
According to the bill submitted to the House of Representatives by the Constitutional Democratic Party, the debt of businesses can be reduced or exempted as necessary, saying that the burden of repayment may lead to a sharp increase in bankruptcy and employee dismissal after the period when repayment is postponed. We are planning to take new support measures to ensure that.
Specifically, in order to prevent moral hazard on the business side, the target is limited to businesses that can continue their business by reducing or exempting debt, and the amount of reduction or exemption is also kept to the minimum necessary.
The government is supposed to make up for the loss on the financial institution side caused by the exemption, and the necessary financial resources are expected to be 5 trillion yen.
Tatsumaru Yamaoka, a member of the House of Representatives of the Constitutional Democratic Party, told reporters, "The government's measures are not enough, and a big political decision to reduce or exempt debt is necessary.