Tokyo, July 8 (Jiji Press)–The number of corporate bankruptcies in Japan with debts of 10 million or more fell to 3,044 in January-June, the second-lowest level for any first-half period in the past 50 years, Tokyo Shoko Research Ltd. said Thursday.

The figure dropped 23.9 pct from a year before thanks to government financing aid. Liabilities left by bankrupt companies fell 6.9 pct to 611.6 billion yen, the fourth-lowest level.

Of the total bankruptcies, some 90 pct were of firms with less than 10 workers, and three-fourths were failures with debts of less than 100 million yen.

The number of bankruptcies caused by the COVID-19 pandemic rose to 762, compared with 247 in February-June last year.

“It’s become apparent with the passing of time that small businesses and stores are running out of power due to the pandemic,” a Tokyo Shoko Research official said.

Of the pandemic-related bankruptcies, 145 were of restaurants and bars that were forced to shorten their operating hours and limit serving alcohol, up from 38.

There were 89 bankruptcies of construction firms impacted by postponements in projects, up from 10, and 22 were of lodging operators, down from 32.

“It’s unclear how much the Tokyo Olympic and Paralympic Games will stimulate the economy,” the official said.

“Bankruptcies are increasingly likely to rise after summer, pushed up by firms running out of breath” amid the pandemic, the official said.