Canceled Olympics Would Jolt Japan’s Financial System: BNP Paribas
Photographer: Adam Davy/PA Images via Getty Images
This article is for subscribers only.
If the coronavirus forces the scrapping of the Tokyo Olympics it would jolt Japan’s financial system and the shock could be reminiscent of the European debt crisis, according to BNP Paribas SA economist Ryutaro Kono.
In addition to the loss of inbound tourism spending, a canceled Olympics would trigger a jump in non-performing loans in the tourism and real estate sectors, Kono said in a report Friday. The government would likely have to respond with spending support for the economy and with bailouts for struggling regional banks, he said.