The Development Bank of Japan extended a record ¥130 billion ($1.2 billion) to Nissan Motor Co. in May with a guarantee that the government will repay most of it in case of a default by the struggling automaker, sources familiar with the matter said Monday.
The guarantee is part of the ¥180 billion loan that Nissan received from the state-affiliated financial institution to weather the impact of the novel coronavirus pandemic. Under the arrangement, if the automaker defaults on the loan, the government will shoulder up to 80 percent, or about ¥100 billion, of the guaranteed portion, using taxpayers’ money.
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