Kobe City reduced about 500 billions debt since FY2004.

The recovery costs from the Kobe earthquake in 1995 has aggravated the public finances of Kobe City, but the city finally gets through a tough time with devoting restructuring efforts such as giving up a new construction of roads and a museum. The public debt as of FY2007 is estimated to be 961 billions debt with the reduction of 486 billions since 2004. The real debt servicing ratio improved by 1.7% to 22.3% in FY2006.