Kouryu Kyoju

Main Menu

  • Home
  • Japan institute
  • Japanese foundation
  • Japan government
  • Japan company
  • Japanese currency

Kouryu Kyoju

Header Banner

Kouryu Kyoju

  • Home
  • Japan institute
  • Japanese foundation
  • Japan government
  • Japan company
  • Japanese currency
Japan government
Home›Japan government›Nissan received the largest loan guarantee from the Japanese government

Nissan received the largest loan guarantee from the Japanese government

By Jane R. Chase
September 7, 2020
0
0


TOKYO – The Japanese government has guaranteed the Development Bank of Japan’s crisis loans to Nissan Motor, Nikkei has learned, a move that could potentially leave taxpayers exposed to future losses from the struggling automaker.

In May, the government-backed lender provided 180 billion yen ($ 1.7 billion) in loans to the automaker. Of that amount, 130 billion yen has been guaranteed by the government, Nikkei has learned.

Under the agreement, the government would have to assume 80% of the secured portion if the loans go badly.

It was the largest government loan guarantee ever given to a large commercial corporation.

As a government-backed institution, DBJ is supposed to save businesses hit by natural disasters or major financial crises, such as the one created by the coronavirus pandemic.

As part of the government-mandated coronavirus crisis support program established in March, DBJ had made 185 loans to companies worth a total of 1.88 trillion yen by the end of July.

Nissan’s loan came after the government agreed to a damage protection agreement in which DBJ pays an annual premium of between 0.1% and 1% of the loan’s value for the collateral.

Nissan was the only borrower to require such a guarantee.

DBJ asked for government support to expedite the lending decision, which came as Japan was under an emergency decree.

Nissan has secured a total of 832.6 billion yen in loans from public and private lenders since April.

A representative for Nissan said the company was unaware the government was acting as a guarantor on its behalf.

DBJ bases its pandemic loans on the size of the borrower and the extent of the damage caused by the virus.


Related posts:

  1. Japanese government supports optional four-day work weeks
  2. Japanese government contacted Toshiba shareholders ahead of AGM – sources
  3. Japanese government to help fund submarine cable projects to counter China
  4. International Studies professor Donald Hellmann to receive Order of the Rising Sun from the Japanese government – the highest honor for academics
Tagsjapanese government

Categories

  • Japan company
  • Japan government
  • Japan institute
  • Japanese currency
  • Japanese foundation

Recent Posts

  • Computational Toxicology Predictive Modeling Service Market Analysis by Trends, Size, Share, Company Overview, Growth and Forecast by 2031
  • ANA urges the Japanese government to remove international constraints
  • A Japanese company develops a bin that freezes garbage to prevent bad odors
  • Foundation Repair Services Market Outlook 2022 and Forecast to 2029
  • Japanese government not liable for damage to refugees from Fukushima nuclear disaster, high court rules say

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • September 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • January 2018
  • May 2017
  • April 2017
  • February 2017
  • December 2016
  • September 2016
  • August 2016
  • April 2016
  • March 2016
  • February 2016
  • November 2015
  • August 2015
  • January 2015
  • April 2014
  • October 2012
  • April 2011
  • March 2011
  • November 2010
  • September 2009
  • Privacy Policy
  • Terms and Conditions