JAL to get emergency loan
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Japanese Finance Minister, Kaoru Yosano, said on Monday that his government was preparing a loan to loss-making Japan Airlines Corp (JAL). According to a Reuters report, Yosano said he had received a request by Transport Minister, Kazuyoshi Kaneko, in charge of overseeing airlines, for the Development Bank of Japan (DBJ) to extend loans to JAL.
“I replied that we hope to cooperate through DBJ loans and that I will pass on the request to them,” Yosano told a news conference after a cabinet meeting. The Ministry of Finance oversees operations of DBJ, a state-owned bank.
A bank official said it would likely provide around JPY100 billion (US$1 billion) in emergency financing to JAL. The carrier earlier this year requested finance through a government emergency loan lending programme.
JAL has not announced the amount it is seeking, but a Reuters reported a company source as saying it may be around JPY200 billion. The carrier reported a JPY50.9 billion operating loss for the year to March 2009 and warned of a JPY59 billion loss in the current year to next March.
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