Japan Seeks Record-Breaking 36 Trillion Yen Debt Servicing Costs

Japan's Finance Ministry is seeking a record-breaking 36,638.6 billion yen in debt-servicing costs for fiscal 2027, which begins next April.

This figure represents a significant increase of 5,362.8 billion yen from the initial budget allocated for fiscal 2026.

The rising interest rates amid inflation and concerns about Japan's fiscal deterioration are expected to drive up debt-servicing costs.

The assumed interest rate on long-term Japanese government bonds is being raised to 3.8% for fiscal 2027 from 3.0% for fiscal 2026, leading to a 27.2% rise in interest payments.