Bankrupt Yubari City to Complete Debt Repayment Next Year
HOKKAIDO –
The city of Yubari in Hokkaido, which declared financial collapse 20 years ago, is preparing to complete repayment of approximately 35.3 billion yen in debt by March 2027, paving the way for lower property taxes, improved municipal employee salaries, and a renewed focus on public services.
Officials from the city, the central government, and the Hokkaido prefectural government held working-level discussions on Yubari’s financial recovery plan, confirming measures to be introduced after the debt repayment is completed.
Yubari entered a government-supervised financial reconstruction program in 2007 following its declaration of financial collapse, becoming one of Japan’s most prominent examples of municipal financial distress. The city has since operated under strict fiscal controls while working to repay its accumulated debts.
Under the plan discussed by the three parties, Yubari will restore its fixed asset tax to the standard rate from fiscal 2027, reducing the burden on property owners who have faced higher taxation during the reconstruction period.
The city also plans to improve salaries for municipal employees, which have been constrained by years of financial austerity.
Yubari Mayor Tsukasa Atsuya emphasized the importance of involving residents in shaping the city’s future as it moves beyond its long period of financial reconstruction.
“We want to build a city where residents can also think of community development as something that concerns them personally,” Atsuya said.
The municipal government intends to maintain fiscal discipline while improving administrative services and rebuilding the foundations of local government operations after nearly two decades of financial restrictions.
With the repayment of its substantial debt approaching completion, Yubari is entering a new phase in which the challenge will shift from restoring its finances to creating a sustainable future for the community.
Source: 北海道ニュースUHB
