Japanese ministers deny JAL loan guarantee reports

"Japanese Transport Minister Seiji Maehara rejected widespread reports that the government has decided to provide ¥700 billion ($7.74 billion) in credit guarantees to Japan Airlines. "We haven't decided how to fund state guarantees for JAL yet, let alone the size of such potential guarantees," he told reporters yesterday. JAL, which is attempting to enter into a government-backed restructuring, reportedly will be given a loan guarantee as part of an "extra budget" for the Japanese government's fiscal year ending March 31, according to multiple media reports from Tokyo (ATWOnline, Dec. 8). "I don't understand why [¥700 billion] was reported," Maehara said. Meanwhile, Dow Jones reported that Finance Minister Hirohisa Fujii, when asked at a press conference whether a JAL loan guarantee would be included in the extra budget expected to be finalized by next week, responded, "I haven't yet heard about it.""