Japan State Lender to Loan More to JAL

The Development Bank of Japan (DBJ) has agreed to increase the amount of its unsecured loans to Japan Airlines, which is under threat of bankruptcy, from 100 billion yen ($1.08 billion) currently, Japanese media reported on Thursday. Executives of the state-owned DBJ, Transport Minister Seiji Maehara and National Strategy Minister Naoto Kan met on Thursday to agree to raise the amount of loans as JAL has already used 55 billion yen of a 100 billion yen credit line recently extended by DBJ, Jiji news agency said. The DBJ and the government are considering doubling the credit line to 200 billion yen, and the additional portion will not be guaranteed by the government, Kyodo reported, citing sources familiar with the matter. The increase in the loan amount will be finalized on Jan. 3 after a discussion between key cabinet ministers, and an announcement will be made, Jiji said. Read more.