TOKYO, Aug. 9 (UPI) -- The slumping Japanese economy is taking a toll on the country's companies, with 24 percent more firms seeking bankruptcy over last year, analysts said.
Credit research firm Teikoku Databank says that 1,131 Japanese companies filed for bankruptcy in July, a 24 percent surge over July 2007, indicating the country is facing harsh business conditions, the Financial Times reported Saturday.
Teikoku Databank warned that tight lending conditions would likely make for even more bankruptcies going forward.
"The domestic economy is being affected by the concurrence of rising prices and slumping economic activity and it is expected that the revenue environment for companies will deteriorate," the firm said. "It would not be surprising for a major bankruptcy to occur any day."
The Financial Times said the severity of the downturn was pointed out by level of debt held by the bankrupt companies, which more than doubled compared to last July's bankrupt corporations at $5.8 billion.
