Long-term debts of about Y1.68 trillion have been run up by 40 public forestry corporations in Japan.
Many of the corporations, owned by local governments, are unable to repay loans because of falling timber prices. Some governments are now planning to close their forestry corporations.
Timber prices have declined by almost 75% after reaching a high in the 1980s. Standing cedar timber, which used to sell at Y23,000 per m3, fell to just Y4,800 in 2003.
