Higher Interest Rates May Cause Japan’s Debt-Servicing to Top 30 Trillion Yen in FY2025: Draft

Higher Interest Rates May Cause Japan’s Debt-Servicing to Top 30 Trillion Yen in FY2025: Draft
A man wearing a protective mask walks past the headquarters of the Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, on May 22, 2020. Kim Kyung-Hoon/Reuters
Reuters
Updated:

TOKYO—Japan’s debt servicing costs would exceed 30 trillion yen ($261.55 billion) for the first time ever in fiscal 2025 if interest rates rise by 1 percent more than expected, a draft of the Ministry of Finance’s (MOF) estimates, due later this month, showed.

The MOF, in its annual estimates over a five-year period, projected debt servicing costs, worth 24.3 trillion yen for the next fiscal year, would hit 28.8 trillion yen in fiscal 2025, assuming interest rates at 1.3 percent.