Regional Bank Corona Corresponds to a New Financing Framework with SME Support
Sales are declining
due to the new coronavirus, and an increasing number of small and medium-sized
enterprises are concerned that their financial base will deteriorate. Of these,
the Bank of Yokohama prepared a loan called “subordinated loan”. The interest
rate is set at about 1% per year, which is higher than usual, but it is not
necessary to repay the principal for up to 15 years, which is characteristic of
companies that can improve their financial base. An auto parts manufacturer in
Yokohama, whose sales have dropped due to the new coronavirus, also raised 200
million yen in a subordinated loan.
“The financial base
is stable”. According to the Bank of Yokohama, about 10 companies have already
applied for this loan, says Akihiko Bandai, an executive officer. The company
that borrowed the “subordinated loan”
Due to the cold
demand due to the spread of the new coronavirus infection, orders decreased
drastically, and the final profit and loss was in the red in the financial
results for the June term. Therefore, the company borrowed 200 million yen from
the Bank of Yokohama in a subordinated loan at the end of the fiscal year.
President Tomiya said, “In April and May, sales have decreased to half of the
previous year”. We expect that sales will decrease by about 30% compared to the
plan after next month.
Source: https://www3.nhk.or.jp/news/html/20200810/k10012560631000.html?utm_int=news-business_contents_list-items_001, https://www.nicovideo.jp/watch/sm37330443