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Japan Government will not provide State Guarantee for JAL loans; but will provide support

23-Dec-2009 10:58 AM

Japan Finance Minister, Hirohisa Fujii, stated the Japanese Government would not offer guarantees on funding to JAL (Reuters/Dow Jones/Kyodo, 22-Dec-2009). The government was considering providing such financial assitance to the carrier in the second extra budget for the current fiscal year (ending Mar-2010) or in the next fiscal year’s budget from Apr-2010. Subsequently, Transport Minister, Seiji Maehara, stated the government would provide support for the airline, even if the State does not offer guarantees. He added that the government is discussing what form this support would take.

Japan Government: "The agreement stated that we would consider the matter, but it did not say we would actually do it…This is a matter that should be worked out by private companies. The DBJ is wholly owned by the state, but it has the status of a private bank, so the government is not allowed to meddle in its business," Hirohisa Fujii, Finance Minister. Source: Reuters, 22-Dec-2009.

Japan Government: “The five ministers confirmed that the government would support JAL during its restructuring. The government will make sure JAL can gain support, including bridge loans, even if there aren't any state guarantees," Seiji Maehara, Transport Minister. Source: Reuters, 22-Dec-2009.