Japan Government considering USD7.7 billion loan guarantee for JAL

Japan Government reportedly plans to extend credit guarantees of approximately JPY700 billion (USD7.7 billion) in loans and other funds provided by financial institutions to enable Japan Airlines to maintain its operations (Nikkei Business Daily, 06-Dec-2009). The plan, which will guarantee 80% of the loans to JAL, will reportedly be funded through an extra budget for FY2010, which is expected to be compiled this week.