Government measures in key jurisdictions 5th edition - Flipbook - Page 83
Japan
(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.
•
On 17 July 2020 the FSA announced that it will accept applications and filings made to it
by financial institutions via email and without seals or stamps, which had previously
been required on original copies before Covid-19.
•
On 8 December 2020, following the announcement of “Comprehensive Economic
Measures to Secure People’s Lives and Livelihoods toward Relief and Hope” by the
Cabinet, the FSA requested financial institutions to support borrowers by:
(i) responding to borrower’s requests for financial support by combining various means
such as deferment of payments or alteration of other loan conditions, providing loans
and using credit guarantee associations so that borrowers will not face serious funding
difficulties at the end of the (financial) year.
(ii) offering support by utilising funds from the Regional Economy Vitalisation Corporation
of Japan and JFC’s subordinated loans.
(iii) supporting business by closely collaborating with local governments, credit guarantee
associations, JFC, SCB and other governmental financial institutions, as well as the SME
Revitalisation Support Committee, tax accountants and local organisations.
On 8 January, 19 January and 5 February 2021, following the Declaration of State of
Emergency (7 January) and the extension of the Declaration (2 February), the FSA
requested financial institutions to support borrowers by simplifying lending process,
providing loans, utilising subordinated loans, amending conditions of existing loans and
others.
•
Employment
What financial
support is
the government
providing
to businesses and to
individuals on
employment issues?
1. Employment Adjustment Subsidy System: Japan currently has an “Employment
Adjustment Subsidy” (Koyochosei-Joseikin) 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 or whole of the Leave
Allowance paid by employers to employees who were made to take leave (in Japan, the law
requires the employers to pay 60% or more of the average wage of the employees when
the employers make its employees take leave (the “Leave Allowance”)) (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 2020 to a month following the month which the
state of emergency has been lifted if the subsidy was requested in that period)) during the
period the employees are furloughed. This revised system shall apply during the period
from 1st April 2020 to a month following the month which the state of emergency has been
lifted. The subsidy will cover up to 100% of the amount paid by employers to their
employees for their leave allowance (which is 60 % of their salary) required by law; subject
to the satisfaction of the certain requirements. Application for the subsidy is made to the
competent Prefectural Labour Bureau or Employment Service Center; it can also be done
online application.
2. Support other than the Employment Adjustment Subsidy System: The government is
providing special benefits to employers that provide extra paid leave for parents who have
children affected by school closures relating to the Covid-19 situation for the period from
27th February 2020 to the end of March 2021.
For a summary of issues on employment in the context Covid-19, please visit our
website here.
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