MUFG sees surge in firms needing COVID-related funding

Cash flow is evidently becoming a problem for Japanese companies.

Mitsubishi UFJ Financial Group (MUFG), Japan’s biggest bank, has seen a swell in companies seeking funding due to the ongoing coronavirus pandemic, reports Reuters.

“Corporate funding needs are rising. We have to swiftly meet the demand because their sales might vanish in some cases, not decrease gradually,” MUFG core unit head Kanetsugu Mike said.

However, he also stated that he doesn’t see the pandemic as a financial crisis and that economies are likely to rebound once the crisis ends.

Mike’s statements are some of the most obvious yet about the impact on the coronavirus in Japan, reflecting how cash flow is becoming challenging for many companies.

Policymakers are especially worried about the impact on small and medium firms as the virus casts doom over consumer demand.

Here's more from Reuters.