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JAL loans guarantee likely not to be included in FY2009 Supplementary Budget

14-Dec-2009 11:42 AM

Japan Government reportedly has no plans to incorporate a state guarantee of up to JPY700 billion (USD7.9 billion) in loans from financial institutions to Japan Airlines into the forthcoming supplementary budget for FY2009 - a move which could seriously affect the financial prospects for the airline (The Yomiuri Shimbun/Kyodo, 12-Dec-2009). Meanwhile, Japan’s Transport Minister, Seiji Maehara, stated the Enterprise Turnaround Initiative Corp of Japan would likely make a decision on providing a broad financial package to the struggling airline in Jan-2010.