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Recruit seeks $4.15bn credit line for coronavirus fund

Japanese staffing company grapples with compensation costs for contract workers

Staffing company Recruit Holdings is seeking credit lines from three banks, as it scrambles for cash to compensate contract employees let go by clients due to the coronavirus epidemic.

TOKYO -- Staffing company Recruit Holdings is seeking credit lines worth a total of 450 billion yen ($4.15 billion) from Japan's three largest banking groups as the company's finances are hit by higher compensation payments to contract employees let go as a result of the novel coronavirus outbreak, Nikkei learned Friday.

Recruit has asked Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group to set up credit lines of 150 billion yen apiece, to create a pool of cash to compensate contract workers laid off by clients hit by the coronavirus.

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