The government decided Friday to extend about 191 billion yen in relief loans to JNR Settlements Corp. to avoid the public corporation's possible default.

A Lower House committee is currently debating government-sponsored bills designed to dissolve JNR Settlements at the end of this month and transfer most of the 27.8 trillion yen debts held by the public company to the government's general account.

The bills are designed to dispose of the long-term debts left behind by the former Japanese National Railways, starting Oct. 1. JNR Settlements inherited the debts and assets of JNR in 1987, when the former national carrier was privatized and broken up into seven JR group companies.

However, Diet deliberations on the debt repayment scheme have been delayed due to the dispute over controversial bills on the financial stabilization measures, triggering concern over a possible default of JNR Settlements.

The JNR Settlements loan of 1.1 billion yen will be due Tuesday, and another loan of 189.9 billion yen is due Wednesday, according to the Transport Ministry.