Thus, the conditions that had propelled high-speed growth changed drastically, and with the outbreak of the oil crises and the appreciation of the yen, high-speed growth came to an end. Stable growth, however, was maintained thanks to the continued upward trend in the working-age population and the absence of competitors in the production of manufactured goods.
SCARP aims to provide a lower cost and more accessible mechanism to restructure the liabilities of distressed small enterprises. The mechanism is based on the Irish examinership system. Without such a coordination mechanism, creditors may benefit from “free riding” by allowing other creditors to move first in offering haircuts to the borrower. Aware of this possibility, each creditor may individually refuse to engage.