Thirty percent of loans to companies afflicted by the Great East Japan Earthquake are past due, as well as 10 percent of housing loans to earthquake victims, a Financial Services Agency survey showed.
Thirty percent of loans to companies afflicted by the Great East Japan Earthquake are past due, as well as 10 percent of housing loans to earthquake victims, a Financial Services Agency survey showed.
The overdue loans total 550 billion yen ($6.8 billion), the agency said.
Most of the outstanding loans are unlikely be repaid, requiring financial institutions to take action, such as forgiving debt repayment, the FSA said.
The FSA conducted a survey on outstanding loan balances as of the end of May on three major banks in Japan and 38 regional financial institutions based in disaster-hit Iwate, Miyagi and Fukushima prefectures.
Of those surveyed, 39 responded.
Of the total, 452 billion yen is owed by companies, which accounts for 30 percent of the outstanding loans for companies.
As of the end of September 2010, outstanding loans for companies in municipalities in the coastal areas of the three prefectures was 1.4 trillion yen.
As for housing loans, 104.5 billion yen, which accounts for more than 10 percent of the outstanding loans, is in arrears.
Of the amount, 90 percent of the borrowers did not request extensions from the lending institutions, the agency said.
The survey indicated that credit unions and shinkin cooperative banks may have higher ratio of risky loans outstanding than major banks.