The Japanese government has guaranteed most of a loan to Nissan Motor Co from the Development Bank of Japan , a source said, taking its guarantee to more than 40per cent of 713 billion yen in finance for Japan's No.2 automaker.
The hefty government guarantee suggests financial firms are cautious about helping to fund the automaker as it seeks to return to profitability and stop bleeding cash.The government has guaranteed 104 billion yen of the 180 billion in loans from the DBJ, said the source with direct knowledge of the matter who declined to be identified as the information is not public.
Three other sources told Reuters in May the government would guarantee part of a loan from Mizuho Financial Group Inc , aimed at helping Nissan ride out the COVID-19 pandemic.