With domestic long-term interest rates exceeding 3%, Japanese companies are expected to face a gradually increasing refinancing burden on debt raised during the low-interest-rate period. Some estimates indicate that Toyota's interest payments could increase by more than 30% from the previous fiscal year.
With domestic long-term interest rates exceeding 3%, Japanese companies are expected to face an increasing refinancing burden on debt raised during the low-interest-rate period. The article explains that the rise in refinancing costs will occur gradually.
Some companies are considering bringing forward their financing schedules and making use of foreign-currency-denominated funding as part of their response.
Toyota Motor Corporation in particular is cited as a company whose interest payments could increase by more than 30%, raising concerns that the impact could spread to other companies.