Japan's program of providing virtually interest- and collateral-free loans to small businesses in the midst of the COVID-19 pandemic has helped them stay afloat, thereby supporting the domestic economy.
But it is also true that the aid program has led to an increase in the number of "zombie" companies that would otherwise have been unable to continue operating.
With the repayment of such loans expected to peak this summer or later, amid higher inflation, there are concerns some companies — unable to repay their loans — may go out of business.