The government is considering setting debt-ratio targets that companies in danger of folding will be required to meet before getting government help securing further financing, Economy, Trade and Industry Minister Takeo Hiranuma said Friday.
The new measures, being considered as banks accelerate the cleanup of their bad loans, are likely to include a target of reducing debts to 10 times a company's annual cash flow.
"We are considering the details, including these things," Hiranuma confirmed when asked about a news report on setting numerical targets. "We are basically leaning in that direction."