27-Nov-2009 11:15 AM

JAL's loan at exceptionally high 10% interest rate; more meetings with retirees on pension reduction

Japan Airlines will reportedly have a high interest rate of 10% p/a set in its contract with the state-owned Development Bank of Japan, covering the loan of a maximum of JPY100 billion (USD1.2 billion) in bridge loans (The Yomiuri Shimbun, 27-Nov-2009). The bank will lower the interest rate once a state guarantee on the loan is determined.

Seperately, JAL held its third meeting with retirees in Tokyo on 26-Nov-2009, in an attempt to persuade them to accept significant reductions in pension benefits to enable the company to receive a broader financial package backed by the Government (Kyodo News, 26-Nov-2009).