Japan Considers ¥700 Billion JAL Debt Guarantees

摘要

The Japanese government is considering guaranteeingnas much as ￥700 billion (US$7.8 billion) inninvestment in Japan Airlines, including loans, to preventnit from running out of cash, local media report.nThe government will guarantee 80% of loans extendednto the embattled airline, said the Kyodo newsnagency. The move effectively ensures that that thencarrier can raise the funds it needs beyond the ￥100nbillion of finance already available from the DevelopmentnBank of Japan. Moreover, the money will benavailable at the low interest rates demanded of Japanesengovernment debt.