The government plans to guarantee about 80 percent of the repayment of an emergency loan to Japan Airlines to be extended by the government-backed Development Bank of Japan, officials said Monday.
The plan was confirmed at a meeting between transport minister Kazuyoshi Kaneko, Chief Cabinet Secretary Takeo Kawamura and Finance Minister Kaoru Yosano in line with a policy to supervise the business turnaround of Japan’s largest airline.
“It’s crucial for the nation to keep its aviation network in good shape,” Kaneko said. “I have asked the other ministers for cooperation in supervising the turnaround of JAL and help its fundraising.”
“We want to cooperate with JAL’s move to make emergency loans,” Yosano said.
Due to the recession and the spread of swine flu worldwide, the embattled airline has seen its revenues drop sharply.
JAL has requested an emergency loan of about ¥200 billion with the DBJ under a government lending program aimed primarily at large financially strapped corporations.
The DBJ and three large private lenders — Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank — are expected to offer a syndicate loan before the end of the month worth some ¥100 billion.
JAL pledged further restructuring measures in its medium-term business plan unveiled Friday.
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