Yet many economists do not believe that the problem of bad loans has been settled yet. Consulting Corp. Meanwhile, businesses have been able to raise funds from the market more easily, as indicated by the central bank's latest Tankan survey. Yet some economists label the government's special loan guarantee measures as a crutch for ailing companies, believing the number of corporate failures will start to rise when government support diminishes because businesses are restructuring themselves to regain profitability. In addition, large bad loans are a burden for many small and medium-sized banks, shinkin banks, insurance firms, securities houses and their affiliated nonbanks, as well as their clients, including general contractors. Depending on how the economy and the stock and real estate markets turn out, there is a possibility of the value of the debts ballooning in the coming month.
Major problems remain for the nation's financial system.
The decision prompted brisk purchases by foreign investors who found positive signs in corporate restructuring efforts aimed at enhancing longer-term profitability. The index has risen at an accelerated pace in the past few months due to a more stable financial system and rising expectations of an economic recovery. The index bounced back on April 9, if only briefly, into 17,000 territory for the first time since March 30, 1998. Reflecting this upward momentum, the turnover on the First Section of the Tokyo Stock Exchange rose to 19.37 billion shares in March, the highest monthly total in nine years and four months. Economists have mixed views concerning Tokyo stock price trends for the rest of this year.