Japan govt to guarantee 80% repayment of Japan Airlines's emergency loan
Kyodo/PTI / Tokyo Jun 22, 2009, 13:16 IST
The Japanese government plans to repay around 80 per cent of an emergency loan by Japan Airlines (JAL), to be extended by the government-backed Development Bank of Japan (DBJ) government sources said today.
The plan was confirmed at a morning meeting of transport minister Kazuyoshi Kaneko, Chief Cabinet Secretary Takeo Kawamura, and Finance Minister Kaoru Yosano in line with a government policy to supervise the business turnaround of Japan's largest airline operator.
"It's crucial for the nation to keep its aviation network in good shape," Kaneko said at a press conference after talks.
"I have asked the other ministers for cooperation in supervising the turnaround of JAL and help its fund raising."
"We want to cooperate with JAL's move to make emergency loans," Yosano added.
Due to the recession and the spread of a new type of influenza worldwide, the embattled airline has seen its revenues drop sharply.
JAL has requested an emergency loan of about 200 billion yen with the DBJ under a government lending program aimed primarily at large financially strapped corporations.
The DBJ and three large private lenders — the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp and Mizuho Corporate Bank — are expected to offer a syndicate loan worth some 100 billion yen to the airline by June end.
JAL had, for restructuring measures in its medium-term business plan, unveiled on Friday the order of the transport ministry.
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