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ANA seeks state guarantees as it borrows $12bn

Japan emergency declaration risks further damage to weak air travel demand

Japanese carrier ANA Holdings is losing 100 billion yen a month as the coronavirus pandemic forces drastic service cuts.   © Reuters

TOKYO -- Japan's ANA Holdings will request a government guarantee for part of the 1.3 trillion yen ($12 billion) in credit lines the carrier is asking from public- and private-sector lenders as its revenue plunges amid the coronavirus pandemic, Nikkei has learned.

A guarantee would let the All Nippon Airways parent borrow without having to put up collateral, with potential to leave the government on the hook if the carrier defaults. Such arrangements are used more commonly for expensive projects such as plant construction than for corporate bailouts.

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